Soros' book - changing in paradigm?

George Soros has written his new book about the economy crisis, its title: The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means. According to his words, United States have to face the most difficult economy decline since 1930. In addition, the U.S economy is threatened by a self-strengthening deteriortive turmoil.

Here are some lines from the book:

"The United States is facing both a recession and a flight from the dollar. The decline in housing prices, the weight of accumulated household debt, and the losses and uncertainties in the banking system threaten to push the economy into a self-reinforcing decline.

Measures to combat this threat increase the supply of dollars. At the same time, the flight from the dollar has set up inflationary pressures through higher energy, commodity, and food prices.
The European Central Bank, whose mission is to maintain price stability, is reluctant to lower interest rates.

This has created a discord between U.S. and E.U. monetary policy and put upward pressure on the euro. The euro has appreciated more than the renminbi, creating trade tension between Europe and China.

The renminbi can be expected to catch up with the euro both to avoid prote ctionism in the United States and increasingly in Europe, and to contain imported price inflation in China. This will, in turn, increase prices at Wal-Mart and put additional pressure on the already beleaguered U.S. consumer.

Unfortunately this administration shows no understanding of the predicament in which it finds itself."

Soros, the legendary financier, philanthropist based his crisis theory on his highly experienced business-view ability.

I haven't read this book yet, but i look forward to take it in my hands, and contemplate his words, because i have got stern doubt this could be cause the biggest recession. We mustn't forget that this situation, the present circumstances are not up to the same economy environment, banking characterism, global financial and pecuniary system than that time.

With all due defferenc to his speculative arguments, I want to read it before product a mindless standpoint.

Les Fleurs du Mal

By Les Fleurs du Mal We mean circumstances which contain decline, sluggish and pessimism sentiment from the side of global market investors, but in the time of bearish market, it does not mean that nobody has got any viable chances to wangle something to compensate loss, or make up backlog and post notable merit. As I said, in the time of bearish market, well, We have to adapt to the situation, especielly to the temporary market psychology with another strategy approach.

We have to play on short, we have to subdue the cognitive discordance in order to fully consider "the prices are decreasing, and things can be morphed into bad". Many of Investors suffer from inproper percipiation in connection with the market process, therefore they intend to hold their position until the apocalyps. But, some of them are able to recognize this belief can lead to Mal, thus they make decisions, and transform their portfolio in accordance with the opportunities.

But, it is good to be cautios, and not to run into speculative frenzy. Investors had better sell those securities, stocks which are not in close ties with staple consumer needs. In recession time investors can turn to the assets of public service sector. Which prices may begin increas.

We must consider that the global market liquidity is about to run out of the neccessitate volume. It was the factor which facilited the increasing of prices of stocks. The short position could be winning pose, but the perils are around the markets, and investors have to provide a mature deliberation with high diligence before make decision.

Stock eXmaschange is All Around Us

Let me take an opportunity and tell with highest solemnity Merry Christmas to all of you who doesn't read my posts, who doesn't feel any remorse in connection with its efforts in 2007 to achieve the goals. Pace mr. reader, I would like to wish an effective new year in 2008 to all of You, do not forget: the only notable and considerable thing is the impossible, we just have to do which is it.

China must be happy

There are some signs that show the EMU (European Monetary
Union) is not immune against the mortgage crisis, which was
spilling over from U.S.A. According to this recognition, the ECB
(European Central Bank)would help the pecuniary system with extra sources.

ECB said in a statement friday night, that it would pump extra
sources in order to achievebigger liquidity in financial system.
But, on the question: "How much excess sourceswill be pumped
in the system by ECB?" the ECBdid not mention. Thought, it signed the durationof this process is long period, it assumed the pumping method will keep until
the end of this year.

The new intervention is promised after the time when the hunger
of liquidity increased such an extent that the three-mounth U.S.A
interest rate had been raising to 5,04 percentage, it is hardly
impermissable when the prime rate is 4,5 percentage.

Torrid in Chine

China's economy has been soaring for years with its
double digit growth rate (approximately: 11,5%).
This increase is fuelled by infrastructure investments,
stock market, and the high level of capital inflow. Throw the
raising key rate requirement its bankin system has been
heightening bolster.

Do not forget, Chine has the biggest population

on Earth with its ~ 1,5 billion inhabitants.

According to the economists the theory, which is said: "Chine will be able to be exportoriented in the long run" is absurd, nonsens. It is particularly reflected in the building industry, where we can find a huge steel-starving effect, consequently Chine shows signs that by and by it has been morphing to importoriented.

The fetching growth rate can impuls a healthy and seren envy

among european countries, which are wrestling with problems of

its continental european welfare modell.

These circumstances have caused a higher level of throb of

european's economy hearth.

Where have Chine left its economy problems? - its owned by past.

Subprime mortgage crisis - End, and when?

According to the Federal Reserv chairman, Ben Bernanke, any early
deeming theory would be vain in connection with how acts the crisis
on investors' and customer's sentiment.

Bernanke added that the interest cut might continue, in turn, the
pecuniary fog hasn't been dissolved, and the stabilization of the market
is still waiting for itself. But he hinted that it may not get that much
worse and that investors and lenders may have learned from their
mistakes.

Bernanke also brushed off concerns about a weak dollar prompting
inflation. When David Malpass, chief economist at Bear Stearns,
asked Bernanke if he thought the value of the dollar impacts inflation,
Bernanke said he did not think a fixed exchange rate would be good
for the economy.

At last, here is an interest additional matter, mortgage originations will
fall next year to the lowest levels since 2000, forcing job losses for at
least 30,000 more home finance professionals, according to a forecast
released on Wednesday by the Mortgage Bankers.

Let me draw the conclusion: crisis doesn't end yet.

Another Bite to dust

However, the World's eye has been sticking to bourses,"we need some action out there" (felicity words by James Hetfield, Metallica), and have to take another view in out life, take for instance the scientific life. So far as i am concerned it would be better way than the contemplate of the juncture, with bothering, distressing and so on.
Do not forget Keynes' words: "everything will be ok in the longrun, first or last, but the problem is, we will die in the long run" - not too optimism, but if we take first section of his advice, we ought to turn to the academic life, and its newest achievments.

Human made by dust, ending by dust.

It would be the best title of this "column". Im just about to make up my mind about the achievement of the Max Planck Institute for Extraterrestrial Physics. Their newest research was published, in connection with dust, ionized plasma, DNA,and - beware, the following strings are gripping - life!

Noble, huh?
According to their statement, they had been mading a new simulation, and then, they were surprised. It showed, that the dust filled with electricity is able to sort and morph its structurein the - classical - DNA formation (double spiral). In so far in this form it is able to hold some information, and as we know, this is a characteristic of life. The key is in the variation of long and short period of spirals. The fact that: if we place motes into an ionized plasma, the mote will absorb plasma's electrons, absorb pozitive ions and evolve a shell around itself.

This evolved system can easily make a plasmacrystal, or DNA'sspiral structure, which is keeping information. This structures able to assign their genetic code to each other.
Countless people are doing exert theirselves to find out some evidence, which are proof that the life is an self-directing system.In a way, and explanation, a hurricane can be treated as like an living-organism.

I always know: there is more than meets the eye, and i am beset by many of pace of rascal dust, which eats, makes a crap, thinks,and searches and prepares to the endless battle, i am hopeful, but i will brace myself up, for the present i have to watch the trends of world market, and when the investors will have been peaceful, i consider this dust-mote and stuff.
[ For Those Who Never Calms: http://www.mpe.mpg.de/pke/index_e.html ]