Soros says...

Discussion in 'Economics' started by GlobalFinancier, Jul 25, 2006.

  1. "Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend, and step off before it is discredited."

    Very very interesting... Draw your own conclusions....
  2. Soros has always been an active market manipulator...
    Especially in offshore minimally regulated markets.

    If one accepts that premise...
    Then he most certainly is involved in manufacturing "falsehoods and lies".

    In Eastern Europe...
    Where he has poured much of his money...
    He is viewed with the deepest skepticism...
    As in "what complex self-serving game is he playing now"?

    That's why I think his 35% lifetime return performance may be somewhat tainted...
    Possibly at least 5-10% of it from artful market manipulation.

    (I would love to be wrong).

    Note: Under US law the ** intent ** to manipulate markets is illegal.
    Whether you succeed or fail is not relevant.
  3. Hey Global: Where did u get the quote?
  4. Trader Vic II, Principles of Professional Speculation first few pages.
  5. In order to adequately assess that statement, people should read more about his theory of reflexity, which is written in the alchemy of finance. Nothing spectacular, but he makes macro decisions based on a collapse of a paradigm, and from the new one that arises.
  6. Well you have to get the full story about Soros escapades in Eastern Europe, he cannot exactly be viewed as a manipulator in the already manipulated markets. Let's not forget, he got his a$$ handed to him in the Russian debt "crisis", along with the likes of JPMorgan, Merrill, Morgan Stanley. They all went in knowing it was a scam, yet still made the greedy mistake and got totally fleeced.

    My guess is that he is hinting at the dollar right now.
  7. bl33p


    Which way? He's been anti dollar in the past so now to say this would mean a reversal to dollar bull?

  8. See the problem with shorting any currency is not you are not actually short but simply exchanging one currency for the other. You technically do not make anything until you convert back, otherwise you simply protected against the devaluation, not exactly a gain if a crashing dollar brings down the whole world economy.
    My thinking is that Soros is hinting at all fiat currency, with the dollar taking centerstage. If you actually study economic history and pay attention to the many fiat currency attempts, you may understand his point. For the most part, they have all been scams, although the incident with France, Jean Law truthfully believed that he was doing the right thing and thought that fiat currency was the answer even as the pyramid was crashing.
    These are just thoughts, I'm not that sure myself. I actually think that devoid a crisis, the dollar cannot go much longer since there are certain benefits to having a cheap dollar, as well as financial techniques for the US to deal with their debt. There are also some disadvantages for Europe for having such a strong Euro, especially as their economy is in question.

    What I do know for sure is that Soros learned that quote the hard way two times.
  9. Interesting, as you say, but is it anything more than a sophisticated version of "buy the rumour, sell the fact"?

  10. Bill Liptzky(spelling error?) should be in jail if the above is true. (New Market Wizards, former forex trader for Salomon, stated that the advantage of being BIG in the forex market is that you can change investor sentiment in a few days.)
    #10     Jul 26, 2006