Discussion in 'Wall St. News' started by Daal, May 7, 2008.
The last Soros prediction I saw was for a recession in the last two quarters of 2007....... and all during the Soviet reign in Russia the prediction was for the collapse of the capitalist world too........
you forgot the depression that was sure to come after the crash of 87 and the end of the financial world during LTCM. of course each time he also proposed 'let me run everything and things will be fine'
I wonder how Soros' "Long India + China Mainland/Short Europe + US" bet has been working out in the last couple weeks?
probably not as bad as being long BSC on the friday pre black monday
We were in a bear market rally.......
today the markets woke up to the fact that oil is going higher and $120+ oil is going to drive down consumer spending and push the economy further into recession.
The markets have been ignoring some economic realities, excessive debt by u.s. consumers, and REAL inflation in gas and food prices are going to force spending declines.
Just another typically absurd post by someone on ET that thinks that there is a direct "connection" between the financial markets and the economy.
I've read a lot of people here posting about the rebate checks. But any effect that they were going to have has been negated by the higher energy costs.
Inflation is going to be the next problem the fed will have to fix. So, for now the short side has a huge advantage. If the fed starts fighting inflation, economy will suffer, if they don't fight inflation, economy will suffer.
...not to forget higher input prices in commodity related industries...companies not able to pass them to the cosumer...
I don 't know why but the markets have been ignoring the impact $100++ (When we hit it and have subsequently blown past)a barrel of oil and gas prices has on the American consumer and for that matter global consumer of oil and the impact that will in turn have on the overall economy.
It's like the market has accepted the believe that no matter what price oil hits it will not adversely affect the consumer.
At some point the market will come back to a more rational outlook on the price of oil and its economic impact. I wonder if todays $123 a barrel turned the light bulb back on.
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