Posted on 11/28/2003 5:03:57 AM PST by Liz
If he destroys the American economy why would he then want to invest in it. You equate the stock market falling with destruction of the economy. But they are not necessarily related.
2. He is a buy-and-hold investor, so he can withstand any value reductions in his current holdings, which may happen as a result of reason 1 above.
If he destroys the American economy, his holdings will be more or less worthless.
What you are assuming is that selling dollar futures (that is how you sell short dollars) is going somehow to destroy the economy. But if you know about it they have already assumed their positions and are merely waiting for the dollar to drop so that they can by it back. Selling might have caused the dollar to decline, if Soros represented a significant fraction of trading in the dollar - which he does not - but having sold, and holding a short position cannot cause the collapse of the American economy.
We still have quite a bit in reserve
Not silver, at all, the Feds buy it on the open market to mint Eagles now...
This is paranoid BS. You may not like the politics of Soros or Buffett. Fine. I disagree with a lot that they say too. But that does not mean that their sense of economics or business is anything other than sound.
What does it mean to destroy an economy "temporarily?" What? It if can recover in any reasonable timeframe, it is not destroyed. It takes a healthy economy (skilled worforce, infrastructure and capital base) to make a healthy economy.
The problem that you and so many others have is that you have a choice of demonizing a couple of folks who, however wealthy, do not have any significant impact on the U.S. economy ($10B in illiquid book value is negligible compared to $10 Trillion in liquid trade flows). The other choice is to understand that there are a lot of structural issues that have the U.S. in an economic hole it cannot get out of without hard work and reform - i.e. the debt burden, environmental and commercial regulation, an out of control tort industry, an education system that is not up to the standards of our best competitors, and so forth. The trouble with blaming your ills on Soros is that you let all of the liberal politicians and their burrowed in bureaucrats off the hook. I am surprised that anyone here falls for the swindle - but they do.
It is wonderful to think that the economy was "bad" under Clinton, and suddenly became "good" under Bush. But whatever you think about Bush's qualities as President, the pubbies have done little to nothing to reverse the structural problems of many years of liberalism.
True, but ... First, these currency swings are usually pretty quick - a matter of months. Second, right now and for some time these investors' cash won't be missed - we're just starting to work out of the overinvestment of the '90s.
Now, now, no need to get emotional. Take a deep breath now. Feel better? Good. Now, let's return to what I have said.
If you read what I wrote, I never criticized the politics of Soros or Buffett. Nothing in my statements even comes close to touching their politics. Neither did I demonize them. In fact, Buffett is a personal hero of mine.
I only provided a couple of speculative reasons to your original question: "Why would Buffett want to destroy the American economy..."
That's all I gave to you: Unemotional, speculative reasons.
I hear you but...with the personal and national debt burying families and our economy alive...
the debt is the thing. I have never been so badly off, and I'm not alone. Has our economy ever been able to spend our way out of an economic crisis starting from such a deep debt as we have today?
Soros may win this one.
The debt is high. But so is the GDP; so are our national assets. It is not in the best interest of the holders of our 7 tril in debt, much of which is in foreign hands, to destroy the currency in which their assets are held.
The practice of 'talking up' one's position is a sign of arrogance and/or weakness; both are banana peels.
One collateral result may be the regulation of the Forex Market; Soros may be held liable for violating practices that are illegal on exchanges worldwide.
I think it would be very a patriotic effort for each of us to get his house in order.
Soro's little crusade will backfire; and the man himself may very well overdue for a little tough love.
driving the dollar down will stimulate the sales of American products here and abroad, including travel HERE......thanks guys....in 6 months the US economy already the strongest in the world, will be screaming and the dollar will rise......buy'em now folks, while these fools are selling short, at a loss......
this is true. also, foreign investment is to be considered. money always goes to work where it the highest return is expected. EU business is not a model of efficiency. foreign direct investment in us telecommunications, incidentally, has been growing.
I find it interesting that so many are outraged at Soros and Buffett. All they are doing is helping Greenspan dig his hole a little faster. Both Soros and Buffett realized early that Greenspan's answer to every problem it to throw more money at it, so they bought tons and tons of silver along with Bill Gates by the way. Now, both Greenspan and the administration are actively debasing the US currency and making all three even wealthier than they were. Nothing wrong with that. Just smart investing by betting on the moronic fiscal and monetary moves of a desperate FED and Treasury Dept.
Richard W.
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