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From MarketWatch: Soros says commodity bubble echoes ‘87 climate

The investment flood into commodity indexes bears eerie similarities to the craze for portfolio insurance which led to the stock market crash of 1987, said hedge fund investor George Soros, who warned the rush into commodities has created a “bubble.”

“In both cases, the institutions are piling in on one side of the market and they have sufficient weight to unbalance it,” said Soros in testimony prepared for a Senate panel on energy manipulation.

“If the trend were reversed and the institutions as a group headed for the exit as they did in 1987, there would be a crash,” he said.