George Soros on reflexivity

Been hearing about George Soros lately – his anti-Bush campaign. Came across this link regarding his views on reflexivity.
A quote to entice my SOM colleagues: “I am in fundamental disagreement with the prevailing wisdom. The generally accepted theory is that financial markets tend towards equilibrium, and on the whole, discount the future correctly. I operate using a different theory, according to which financial markets cannot possibly discount the future correctly because they do not merely discount the future; they help to shape it.”
And one for Marta in particular: “Thinking participants cannot act on the basis of knowledge. Knowledge presupposes facts which occur independently of the statements which refer to them; but being a participant implies that one’s decisions influence the outcome.”
I agree with him: “There is an active relationship between thinking and reality, as well as the passive one which is the only one recognized by natural science and, by way of a false analogy, also by economic theory. I call the passive relationship the

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