Let me now spell out how the new paradigm differs from the old one……. Instead of being always right, financial markets are always wrong. They have the ability, however, both to correct themselves and occasionally to make their mistakes come true…….George Soros: The New Paradigm For Financial Markets

In New York, the Dow Jones Industrial Average lost 35 points to 11,807.43 points on thin trading due to anxiety around the Federal Reserve’s interest rate meeting tonight. Inflation concerns underscore the Fed’s decision with recent oil price records adding pressure. General concerns about the economy abound and a report showed that consumer confidence was at a 16-year low. Financial stocks rallied on speculation that HSBC will takeover UBS. UBS shares gained 7% and Lehman Brothers gained 6.8% with the US Financials Index (XLE) gaining 1.2%.