Summary of New Paradigm for Financial Markets

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">At the end of book George Soros gives some policy recommendation for the present crisis&period; He admits that these are not firm policy recommendation but subject for the further discussion&period; Since author is the strong opponent of bush administration and believes that new initiative are to be expected by the new Democratic US President&period; Some of the important recommendations of George Soros are that newly introduced financial instruments should be abandoned&comma; more regulations should be introduced regarding credit creation&comma; regulators should be stopped from indulging in such activities which they do not understand&comma; and Fed should play its role in the risk management&period; All the financial authorities should not only deal with inflation and money supply but also play its role to avoid assets bubble and analyze the credit conditions&period; George Soros also proposed the creation of clearing house or exchange for credit default swaps &lpar;CDS&rpar; with a sound capital structure&period; In order to control the collapse in house prices some additional measures should be taken such as guarantees&period; These guarantees will help loans modifications&comma; amendment of bankruptcy law&comma; and refinance subprime borrowers&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;