•Shekhar Gupta: In fact you have written that that it was the availability of cheaper credit that rose the prices in America. So that was a distortion? And it was market created distortion?

George Soros: Yes. What I’m saying is that far from what is always being talked about the equilibrium. Markets have a way of producing ripples and therefore the regulators have to accept that there is no … for preventing bubbles from growing too big.

•Shekhar Gupta: But that is precisely why markets are so much fun and not boring.

George Soros: That is for sure

•Shekhar Gupta: And that is what brings George Soros back from retirement?

George Soros: Well, it took me out of retirement for a while because I felt I could really lose a large part of the money I made throughout my life time. So I came out of my retirement and managed to preserve my capital. But now I’ve gone back to retirement. I no longer as active as I was for the last two years.

•Shekhar Gupta: People say you came out of retirement and made $2 billion of money. So you can afford to go back to retirement. But tell me you been writing on this, your latest book as well. You say that what has happened was a life changing and a history changing event as well. And markets will never be the same again.

George Soros: No. an era has ended.

... contd.