--- title: "Meaning & Key Takeaway of: I put forward a pretty general theory…" description: "\"I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about market..." image: "https://sms4smile.com/quotes/i/107/george-soros-1593_equilibrium_i-put-forward-a-pretty-general-theory-th_1102399.jpg" --- # I put forward a pretty general theory that financial… ![“I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about markets tending towards equilibrium.” quote by George Soros](https://sms4smile.com/quotes/i/107/george-soros-1593_equilibrium_i-put-forward-a-pretty-general-theory-th_1102399.jpg) [Download](https://sms4smile.com/quotes/i/107/george-soros-1593_equilibrium_i-put-forward-a-pretty-general-theory-th_1102399.jpg) [Open image](https://sms4smile.com/quotes/i/107/george-soros-1593_equilibrium_i-put-forward-a-pretty-general-theory-th_1102399.jpg) > “I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about markets tending towards equilibrium.” [George Soros](https://sms4smile.com/quotes/author/george-soros/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Markets naturally fluctuate and rarely settle into a stable equilibrium, contrary to common belief. **In simple terms:** Markets are inherently unstable, not naturally balanced. Key Takeaway Expect volatility and question equilibrium assumptions. Themes finance instability economics Mood cautious analytical Type theoretical critical When to use this quote - investment strategy - policy making - risk assessment - educational seminars Key Concepts complex systems feedback loops adaptive expectations Questions to Reflect On - How does instability affect long‑term investment planning? - What policies could mitigate systemic risk? A Different Perspective Stability can emerge temporarily through regulation, but underlying forces remain volatile. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Equilibrium](https://sms4smile.com/quotes/about/equilibrium/) [Financial](https://sms4smile.com/quotes/about/financial/) [Financial Market](https://sms4smile.com/quotes/about/financial-market/) [Financial markets](https://sms4smile.com/quotes/about/financial-markets/) [Intrinsically Unstable](https://sms4smile.com/quotes/about/intrinsically-unstable-2895137/) [Investing](https://sms4smile.com/quotes/about/investing/) [Markets Intrinsically](https://sms4smile.com/quotes/about/markets-intrinsically-2895136/) [Money](https://sms4smile.com/quotes/about/money/) [Theory](https://sms4smile.com/quotes/about/theory/) [Theory Financial](https://sms4smile.com/quotes/about/theory-financial-2895138/) [Thinking](https://sms4smile.com/quotes/about/thinking/) [Unstable](https://sms4smile.com/quotes/about/unstable/) [Unstable Really](https://sms4smile.com/quotes/about/unstable-really-2895139/) ## Related quotes > [The generally accepted theory is that financial markets tend towards equilibrium, and...discount the future correctly. 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When that happens, markets enter into a state…](https://sms4smile.com/quotes/george-soros/in-certain-circumstances-financial-markets-can-affect-the-so-called/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Although I have made a fortune in the financial markets, I now fear that the untrammeled intensification of laissez-faire capitalism and the spread of…](https://sms4smile.com/quotes/george-soros/although-i-have-made-a-fortune-in-the-financial-markets-i-now-fear/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to…](https://sms4smile.com/quotes/george-soros/the-financial-markets-generally-are-unpredictable-so-that-one-has-to/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [The only thing that could hurt me is if my success encouraged me to return to my childhood fantasies of omnipotence - but that…](https://sms4smile.com/quotes/george-soros/the-only-thing-that-could-hurt-me-is-if-my-success-encouraged-me-to/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [As an anonymous participant in financial markets, I never had to weigh the social consequences of my actions ... I felt justified in ignoring…](https://sms4smile.com/quotes/george-soros/as-an-anonymous-participant-in-financial-markets-i-never-had-to-weigh/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [I contend that financial markets never reflect the underlying reality accurately; they always distort it in some way or another and the distortions find…](https://sms4smile.com/quotes/george-soros/i-contend-that-financial-markets-never-reflect-the-underlying-reality/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Financial markets are supposed to swing like a pendulum: They may fluctuate wildly in response to exogenous shocks, but eventually they are supposed to…](https://sms4smile.com/quotes/george-soros/financial-markets-are-supposed-to-swing-like-a-pendulum-they-may/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [As I discovered, there is a great deal of similarity between a boom-bust process in the financial markets and the rise and fall of…](https://sms4smile.com/quotes/george-soros/as-i-discovered-there-is-a-great-deal-of-similarity-between-a-boom/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [The financial markets play an active role in determining what's going to happen, how the economy is going to function.](https://sms4smile.com/quotes/george-soros/the-financial-markets-play-an-active-role-in-determining-what-s-going/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Taking this view, it is possible to see financial markets as a laboratory for testing hypotheses, albeit not strictly scientific ones. The truth is,…](https://sms4smile.com/quotes/george-soros/taking-this-view-it-is-possible-to-see-financial-markets-as-a/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [The reality is that financial markets are self-destabilizing; occasionally they tend toward disequilibrium, not equilibrium.](https://sms4smile.com/quotes/george-soros/the-reality-is-that-financial-markets-are-self-destabilizing/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [This business is so unstable, and you never really know where you're going to be.](https://sms4smile.com/quotes/katie-holmes/this-business-is-so-unstable-and-you-never-really-know-where-you-re/) [Katie Holmes](https://sms4smile.com/quotes/author/katie-holmes/) ## More by George Soros > [Merkel has realized that the euro is not working, but she cannot change the narrative she has created because that narrative has caught the…](https://sms4smile.com/quotes/george-soros/merkel-has-realized-that-the-euro-is-not-working-but-she-cannot/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't…](https://sms4smile.com/quotes/george-soros/markets-are-designed-to-allow-individuals-to-look-after-their-private/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [We must not forget; but we must forgive. Suffering often such compassion from the Jewish community. It was Jewish groups in the US who…](https://sms4smile.com/quotes/george-soros/we-must-not-forget-but-we-must-forgive-suffering-often-such/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [I very often used to get backaches due to the fact that I was wrong. 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We try to catch new trends early and in later stages we… ](https://sms4smile.com/quotes/george-soros/we-at-soros-fund-management-use-options-and-more-exotic-derivatives/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [“On the abstract level, I have turned the belief in my own fallibility into the cornerstone of an elaborate philosophy. On a personal level,…](https://sms4smile.com/quotes/george-soros/on-the-abstract-level-i-have-turned-the-belief-in-my-own-fallibility/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [The main difference between me and other people who have amassed this kind of money is that I am primarily interested in ideas, and…](https://sms4smile.com/quotes/george-soros/the-main-difference-between-me-and-other-people-who-have-amassed-this/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [By creating the European Central Bank, the member states exposed their own government bonds to the risk of default. 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