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Jim and Gerrit,
Thanks for the common sense views. I must say that I have held similar ones for
the last 3 years, not understanding why the populace continues it's "irrational
exuberance" of participation.
Jim,
Thank you for this one selected Soros' statement.
"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."
It is the sence that makes the picture correct in my mind regarding any source
that involves the mass populace in their collective belief of or in anything.
That not only applies to mania markets but "beetle mania" or a government mania
like Germany had experienced. The masses believed in a series of falsehoods and
lies. Very difficult for a majority held belief to be demonstrated to that
population as wrong. History is full of these examples from believing the world
round to understanding the existence of the human circulatory system.
This statement aligned that for me and gives me the understanding of what is
going on in these markets.
See U
Tom
planeacres@xxxxxxxxxxxxxxxx
-----Original Message-----
From: James Rehler <jrehler@xxxxxxxxx>
>Gerrit Jacobsen wrote:
>>
>> This is exactly the reason why the market will fall. The market is
>> designed in such a way to weed out stupidity. A market that is
>> continously rising attracts invariably many stupid people who think it
>> will continue this way.
>>
>I've been thinking that this market will collapse when an event comes
>along that causes the general public to drastically slow investment in
>mutual funds and equities. A good hard downturn in the ecomony should do
>it. People need the cash now, maybe withdraw some funds from the market
>to meet immediate needs, etc. The values that have been jacked up due
>to demand start falling, then falling some more, resolve waivers,
>investors pull more funds, then panic sets in and ka boom, BIG CRASH.
>
>I think we should remember Soros' quote:
>
>"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."
>
>So, lets ride this trend with one foot out the door, ever ready to bail
>at the first sign of real trouble. Hell, isn't that what trading is all
>about anyway.
>
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