Yesterday, I wrote about the direction of the economy. Today, CNN Money published an interview with one of the greatest investors ever, George Soros, on the economy. Now whatever you think of him politically, it can’t change the fact he came from nothing and is now worth $9 billion largely on his own investment decisions.

His overall thesis is that the period of rapid financial wealth creation is over. This doesn’t seem to be too much of a stretch, just look at the returns for index funds over the last couple of years. This doesn’t inspire a lot of confidence in the future.

Mr. Soros goes on to site two major causes; bubbles collapsing and the Fed’s power to intervene.

He notes that this is the first time in history two major bubbles, housing and credit expansion (all industries), have burst at the same time. This has caused the dollar to fall from it’s prominent position and for the current global financial system to be greatly questioned. These events have left a vacuum, which has not been filled.

The Fed’s lack of power is Mr. Soros’ second major concern, as the Fed is caught between two opposing forces, inflation and slow growth. Any reaction to fix one problem stimulates the other. It’s a no win situation.

Like I said yesterday, review your investments, have a plan for the worst case scenario and have a good emergency fund set up.