Soros calls commodities a bubble, fostered by institutions


As the debate continues about the causes of the oil price spike, hedge fund legend George Soros, founder of Soros Fund Management, called it a “bubble super-imposed on an upward trend in oil prices that has a strong foundation in reality.”

Speaking this week before the U.S. Senate Commerce Committee Oversight Hearing on FTC Advanced Rulemaking on Oil Market Manipulation, Soros said the institutional buying of commodity indices fits his theory of bubbles and compared it to portfolio insurance, which led to the stock market crash of 1987.

“There is a strong prima facie case against institutional investors pursuing