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Wednesday, September 16, 1998 Published at 12:00 GMT 13:00 UK


Talking Point


Is capitalism under threat?

Capitalism as the world knows it is falling apart - that is the stark warning from international financier George Soros.

He says the flight of capital from Latin America in the wake of the Russian crisis is causing the global capitalist system to "come apart at the seams."

It is time for a radical rethink of how capitalism works, he says. Our belief that financial markets act like a pendulum is false.

Recently they have acted more like a wrecking ball, knocking over one economy after another.

So does the global economic crisis mark the end of capitalism? Is it time to rethink the rules?

If you listen to George Soros the answer is yes. He has played the currency markets around the world and should know more about them than most.

Supporters say he has an unparalleled understanding of what makes the world economy tick. Evidence to support his claim that capitalism is collapsing is there for all to see.

Asia, Japan, Russia have all suffered financial - and economic - collapse. The US stock market is volatile. Now Latin America is feeling the heat too.

George Soros says it is time to rewrite the rules of capitalism. Critics, however, suggest he has held entire economies to ransom.

Others also doubt these financial theories. They say George Soros may have won huge amounts over the years but he has lost a pretty fortune too.

What do you think of his view of capitalism?

Is capitalism under threat?


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