JW:
"I laugh at these shallow pointed fingers
but the public will often believe them, since largely illiterate when Dow/S&P is 30% lower, they will find a similar off-mark excuse"
SOROS:
Only problem is, if they catch or rumor a catch of any more snipers, or a football team scores a certain number of points, or Abby wears a mini-skirt, or Greenspasm drops his briefcase, or Saddam has a loose bowel movement, or Elvis is spotted in Washington . . . or, or, or . . . They may have the Dow above 9000 again before a drop, and then we just go back to where we were. In other words, we may need a 50% drop. The flip side of that is, NOTHING has changed, and the higher they tweek this thing, the more painful the next major drop will be. It just might cause that capitulation that everyone seems to think cannot happen in this new era where all stock market participants are mega-educated by CNBC and can't be scared into selling something which always bounces right back. I still think the key will be related to foreign investment in the USA and how that dwindles (and even begins to be pulled) with an eventual coordination of a rise in the EURO and a decline in the dollar. Terrorism (I thought) would be a logical catalyst to set off this gradual shift of power, but it has not yet gone that way. Of course, there is always the JPM shenanigans that could come home to roost eventually and without much warning.
I remain,
SOROS |
