Don Luskin. Economist, International Man of Meshugga.

Newsmax (I know, I know.)

Is Soros Planning 'October Surprise' for Bush?

Here's the real worry: Could the master currency trader manipulate the financial markets to create a panic, collapsing the stock market or the U.S. dollar on the eve of the November election?

The thought of such a scenario – dubbed a "Financial October Surprise" – has some worried.

[ . . . ]

Soros is so fervent in his opposition to Bush, Timmerman indicates, that investment pros are already advising a cautious watch-and-wait attitude toward the billionaire.

Timmerman writes, "Investment adviser and author Don Luskin thinks investors should watch Soros carefully but calmly."

Conditions Must Be Right

"At least two of three conditions must be met for a speculative attack on the market to succeed," Luskin told the magazine. "First and foremost, the speculators have to be right."

Timmerman says that when Soros sought to break the British pound with massive currency trading in 1992, "he played into a market that knew the existing exchange rates were unsustainable."

Adds Luskin: "So he speculated against the Bank of England, not against the whole damn world. You can influence the market by the very act of betting."

In an ideal situation, Luskin says, there should be technical market conditions that force other players "to take action triggered by what you did, independent of wanting to help you."

The article devolves from there--a relative term, I know--explaining that circuit breakers (program trading stops) have been in place since 1987's mess. No mention of post-'97 Asia collapse protections. I was still laughing at "First and foremost, the speculators have to be right", when I got to this:

There is no evidence that Soros is planning a financial attack on U.S. markets. But with a bankroll of $7 billion and a passionate hatred of George Bush, Soros has many people worried.

Many people? Don, tip for you: Aluminum Futures. Maybe some AA, too.

THI^™ = 27.448979592

"Is Soros Planning 'October Surprise' for Bush?"

Tinfoil Hat Index^™ 27.448979592

1345 Words / 49 "Newties"

• 6 "panic"; 2 "worry"; 2 "worried"; 1 "concern"; 1 "concerned"; 1 "hurt"; 1 "fear"

• 3 "October Surprise"; 3 "defeat"; 2 "danger"; 1 "doomsday"; 1 "crisis"

• 5 "down"; 2 "fell"; 2 "disrupting"; 1 "collapse"; 1 "collapsing"; 1 "crash"; 1 "plunged"; 1 "drop"

• 3 "Nazi"; 3 "Left"; 2 "Soviet"; 2 "hatred"; 1 "fanatical"