Soros says deep recession inevitable, depression possible WASHINGTON (Reuters) - George Soros, chairman of Soros Fund Management, testified at a House Oversight and Government Reform Committee hearing on Thursday. Highlights: * Said "a deep recession is now inevitable and the possibility of a depression cannot be ruled out." * Said hedge funds were an integral part of the financial market bubble which now has burst. * Said hedge funds will be "decimated" by the current financial crisis and forced to shrink their portfolios by 50-75 percent. * Said Fed, Treasury Department and the SEC must accept responsibility to prevent market bubbles from growing too big in future. Said impossible to prevent market bubbles from forming, but they can be kept within "tolerable bounds." * Said financial engineering should be regulated and new products approved by regulators, and that such regulation should be a high priority of the new Obama administration. * Said a recent IMF credit facility not large enough to stabilize markets.
My sources are telling me to stay out because the probability is high that we will likely end the day flat (eg. narrow-range bar).
Speaking of yawn, don't you regret having gotten up bright and early? Lucky for me, I slept in today.
S1 839.25 S2 825.25 PP 862.5 hthhhtp://custom.marketwatch.com/custom/tdameritrade-com/html-story.asp?guid={83a0804c-d04b-48e3-a0e3-7eb32e8b386e}
Had some big negative ticks there : -1200 but the volume was low and all they did was go down a mere 8 points. There could be more of this selling throughout the day. I still think it has to test that 833/820 area and S2 at 808 before there is any meaningful rally.
Well, again, my unreliable source indicates that such a meaningful rally will not materialize before hitting the 2002 low.