[deluz35]

Excellent summary Barron. The Soros book is "The Alchemy of Finance" (1988) He provides several examples of boom/bust processes. FWIW, Soros predicts a real estate crash in the USA in his last book "The Age of Fallibility: Consequences of the War on Terror" (2006)

If too many investors start taking losses, they will all want to sell at the same time, and the prices collapse suddenly. It is a virtual "run on the banks" when all the depositors want to withdraw their money at once and panic when it isn't there.

This type of panic is a very real threat and must be guarded against very carefully in the coming years, as the central bankers deal with the necessary deflation of the American dollar and the servicing of the $10 trillion dollar federal deficit.