The Economic Twilight Zone

4 October 2012

I read with interest Elliott Wave Theorist by Robert Prechter.  Despite laments to the contrary among those who confuse brains and a bull market, I think Mr. Prechter is a brilliant man.  I have learned a great deal from his insights over the years.  So I was struck by this extremely bold first sentence in his September issue:

"Global markets and economies are mired in the early stages of the biggest disaster ever." 

Yikes! No word mincing going on there.    

To put a little meat on the bones of Mr. Prechter's assertion, which I find highly plausible, I turn to Mr. George Soros and his boom/bust theory as defined in The Alchemy of Finance, written in 1987, and in my mind still the best single book on global macro ever written.  

Currency Currents 4 October 2012

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