Soros applies rigid logic to the idea of processes which are transacted by "thinking participants". The crux is that our opinions evolve from observation (imperfect knowledge) which in turn influences our actions. Collectively these actions (group market behavior) alter participant perceptions. Fundamentally this explains market instability and the tendancy to experience "boom-bust" cycles at times. When I read "Alchemy of Finance" and "Soros on Soros" in the mid 90's, I took used the concept of "reflexivity" to create an interaction model for the Marine Transport industry which I was involved with at the time. This model explained an predicted the major changes that occured in that business for the 7+ years I was in it. In my opinion, all traders should review Soros' writting. He put his money where his mouth was and had no qualms about putting his cards on the table. We may all not agree with Soro's politics, but few can argue with his success as a market participant. Regards