In 2009 George Soros said that sometimes banks and insurance companies began to transgress the law, rather than just lobbying to have the law changed to serve their interests.
Besides, he said, axioms of free-market economics do not apply to the financial markets as “markets feed on themselves, so that financial values have a permanent tendency to swing and are never rational”.
Therefore, according to Soros, real recovery would require regulation that compels banks to carry more capital and lend more judiciously. But until the international financial system is fairer to the less-developed countries on “the periphery”, the core of the world economy will always be at risk of being flooded by hot money fleeing from that risky periphery. Please read the whole story [here](http://www.guardian.co.uk/books/2009/may/02/big-bang-will-hutton) (and here’s why I think you should)_