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- Amidst Chaos, Some Clarity on the Forex Markets [view article]
- Coordinated Rate Cuts: Too Little, Too Late? The Forex Angle [view article]
- Dollar Goes Down Along with Bailout Plan [view article]
- What's Next for the U.S. Dollar? [view article]
- Global Financial Woes and the Forex Domino Effect [view article]
- Market Nosedive Pushes Dollar Down [view article]
- Forget About a V-Shaped Recovery. Maybe a W. Or L. And What About $? [view article]
- Dollar Falls as Stock Rally Tempts the Carry Trade [view article]
- Dow at 10,000 Could Mean Dollar/Yen at 100 [view article]
- Lehman Spelling Trouble for the Dollar and Carry Trades [view article]
- Pending Fed Rate Decision, Dollar Loses Steam [view article]
- Housing, Lehman, and an End to Market Euphoria [view article]
loading ...Recent JYN Articles
- Amidst Chaos, Some Clarity on the Forex Markets
- Coordinated Rate Cuts: Too Little, Too Late? The Forex Angle
- Get-Well Card from Central Banks Doesn't Cure the Underlying Ailment; Forex Remains Volatile
- Dollar Goes Down Along with Bailout Plan
- Global Financial Woes and the Forex Domino Effect
- Forget About a V-Shaped Recovery. Maybe a W. Or L. And What About $?
- Dollar Falls as Stock Rally Tempts the Carry Trade
- Market Nosedive Pushes Dollar Down
- Interactive Brokers FX Summary
- Dow at 10,000 Could Mean Dollar/Yen at 100
- Full List of Articles »
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Amidst Chaos, Some Clarity on the Forex Markets [view article]
Is Forex Risky? I mean riskier than stocks and hedge funds? NFA and CFTC in the USA and FSA in the UK require from everyone offering forex (besides paying registration fee) to state everywhere: "Forex is risky!". Indeed it may be true.The banks are safe. Well, I can't say that at the moment.
And investing in stock markets and property (Real Estate) should bring long term gains. This is questionable as there are falls in Stock Exchanges' Indices (Indexes) right now, that returned us 10 years back. Nikkei still has a lot to go until 35.000 it reached in early 90's. When we will see Dow Jones at 13.000 again?
I make more than 100% annualized on forex and my trading systems are verified by independent Trading Systems Authority. For me, forex is no riskier than having money in a bank.
Reply
Coordinated Rate Cuts: Too Little, Too Late? The Forex Angle [view article]
Thanks user 218, I hadn't thought of that. ReplyCoordinated Rate Cuts: Too Little, Too Late? The Forex Angle [view article]
The smart money that is very wealthy figures that Obama will win the election and tax them to pay for all of his give away plans so they are moving their money out of the market to safer havens. ReplyCoordinated Rate Cuts: Too Little, Too Late? The Forex Angle [view article]
For the author's enlightenment:seekingalpha.com/artic...
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Coordinated Rate Cuts: Too Little, Too Late? The Forex Angle [view article]
"Unfortunately, despite several rallies in stocks, equities have given back all of their gains as investors seem to believe that the actions by the central banks are too little too late"More appropriately the 'investors' are finally realizing that central banking IS the problem.
Systems based in a constantly devaluing currency ALWAYS collapse in the long run. Sadly the author is unaware of this and continues to apply the 'usual' rules of lower rates = market up when there has been a huge shift in the underlying belief system of the market toward distrust of the underlying fiat money tenet.
Smart money can see by the extreme measures taken to 'save' the system that it is already too late. The best central banksters can hope for at this point is a long and drawn out decline. Reply
Coordinated Rate Cuts: Too Little, Too Late? The Forex Angle [view article]
When all central banks cut rates the same amount, the problems existing between them remain the same. But all countries do not have the same problems. Toxic exposure varies by country.So, yes it is way too little, but not too late if each Bank acts according to its needs in an uncoordinated manner. Money will then begin to flow away from the weaker to the stronger. The weaker can adjust accordingly. Reply
Coordinated Rate Cuts: Too Little, Too Late? The Forex Angle [view article]
USD/JPY the carry trade is far from completely unwounded, long term, short this pair seems like the clear winning trade ReplyCoordinated Rate Cuts: Too Little, Too Late? The Forex Angle [view article]
Looks like hedge funds are looking at every Fed pump as an opportunity to dump on the chumps. ReplyDollar Goes Down Along with Bailout Plan [view article]
there are a number of differences between this depression and the last one, though the biggest one is the lack of a gold standard. that is why the previous depression was deflationary, and why this one will be inflationary. there is no mechanism to restrict the central bank from inflating the money supply to death, and every indication is that they seem to be interested in doing just that.interestingly, though, i think if you priced all assets in gold, this depression would be deflationary as well. so perhaps it depends on what currency you are using when asking whether the depression is inflationary or deflationary.
On Sep 30 12:58 PM Muddling Investor wrote:
> Last time we had Great Depression, we had deflation. Why would we
> have inflation now? Credit is frozen, how do you get money to inflate?
> It's ridiculous. Just look at the dollar strength against all currencies
> yesterday and today.
>
> Disclosure: long UUP. Reply
What's Next for the U.S. Dollar? [view article]
must seedavidandrewtaylorsite.... Reply
Dollar Goes Down Along with Bailout Plan [view article]
I dont know much about the specifics of the bailout. I'd like an idemised list of where the money is going.$700 billion is to much money to use without a complete accounting of it. I also want the media to let america know this info, and tell the people excactly what regulations are going in and what "deregulations&qu... were put in that caused this mess. If we get a bailout it will destroy our dollar and if not our dollar is toast anyway. I'm just a rookie with an opinion.Dave Reply
Dollar Goes Down Along with Bailout Plan [view article]
Bailouts are highly inflationary, gold and silver have a fixed supply, the implications are obvious and as everybody climbs on board this will be huge, see:arabianmoney.net/2008/.../ Reply
Dollar Goes Down Along with Bailout Plan [view article]
Plan B: The Mortgage Investment Billfor Reviving the Economy
Stan Muse
smuse@us.ibm.com
The Federal Reserve is out of Federal Funds rate options and now the Congress is about to pass legislation which will be the largest bailout bill in the history of the world. Fannie Mae and Freddie Mac are now penny stocks with perhaps over 1000 bank failures yet to come. The American taxpayer will be told that they and their children will be writing big checks to rescue the Wall Street crooks and congressmen that caused all the problems, while receiving nothing in return.
Anyone who has been following recent congressional hearings knows by now that this is unacceptable to Main Street, the voters who will be firing their congressmen for turning the USA into a socialist country. It is also widely believed that this bailout bill may not be embraced by Wall Street because of its onerous terms even if passed. Finally, it will not provide sufficient liquidity for improving the rest of the economy.
A much more effective and fairer way to end our economic crisis is easily attainable. To state it simply, all Congress has to do is to pass a Mortgage Investment bill which allows individuals a one-time option to use some of the funds in their IRAs to pay off their mortgage balance in full, without any penalty, interest, or taxes for doing so. In return, individuals choosing to exercise this option give up their mortgage interest tax deduction for life. This bill could be passed quickly and independently of any other economy-related legislation currently being debated, or included in the current bill. Individuals choosing this option would need sufficient IRA funds to pay mortgage balance in full. The actual payment to the individual’s mortgage company would be done by the IRA managing institution to avoid fraud.
As one senator recently stated, ‘for most people their home is their IRA’. For many others, their 401-K plans hold many trillions of dollars, much of which by now is parked in money market funds or T-bills as mine is. If these IRA funds could be released to pay off mortgages, we could possibly avert, or at least significantly shorten, the economic recession we now find ourselves in. In fact, no other bailout legislation may even be necessary, although more regulatory legislation is certainly needed.
I asked Allan Meltzer, Arthur Segel, and Ellen Zentner to review this proposal and received some positive responses. Ellen said it seemed to be fool-proof and better than a reverse mortgage. In fact, it is a no-brainer for the homeowner with a large 401-K balance, and for the government. The only people who might object, as Ellen stated, are the bankers who want to keep homeowners dependant on them, especially those in the upper-income group. But even the bankers can not want the government to own a large stake in their business for a multitude of reasons.
It makes sense to allow people to use their IRA money, which they earned, to invest in the best and safest investment they could ever make, their home. Presumably they will need a place to live in retirement on a fixed income. It makes no sense for someone with more than enough IRA funds to cover their mortgage balance to loose their home because they lost their job and can not pay their mortgage. It also makes sense because it is not some form of government bailout which rewards the bad behavior of mortgage companies and unqualified borrowers. Instead, it rewards the good behavior of those who have saved and invested in the economy
If only 5 million people chose this option, for an average of only $200,000 each, the result would be $1 Trillion in paid-off mortgages, providing liquidity to the mortgage industry. By executing the option, an individual’s annual mortgage payment would become disposable income to put back into the economy or back into IRA accounts. To the individual, the effect is the same as lowering taxes. If only 5 Million people were able to put back $20,000 per year into the economy, the result would be a $100 Billion per year stimulus package for many years to come.
In my case, with $800K in IRAs and a secure pension, I would increase disposable income by $1600 per month while reducing the IRA balance by only $160K, but saving over $120K in future interest payments. I could retire, which I can not afford to now, and leave my six figure job to someone else. I could also quickly replenish the IRA money used to pay off my mortgage with the extra income.
Adding a further provision to delay receiving Social Security payments for a year in order to exercise the option would be a baby step towards privatization of Social Security. Anyone financially able to exercise the option should be able to delay the payments. For every 5 million people choosing the option, approximately $100 Billion would remain in the Social Security fund. This could fix our problems with Social Security for good.
Some of the benefits of this plan would be to:
• Immediately increase an individual’s or married couple’s disposable income by tens of thousands of dollars each year while enabling them to become debt free
• Save homeowners hundreds of thousands of dollars in mortgage interest payments
• Encourage individual IRA savings by many who have never saved
• Allow many people to retire earlier than they otherwise could
• Create demand for housing, reducing inventory, and stopping the decline in home prices
• Stimulate the overall economy, creating and saving jobs
• Not cost the government anything, and actually Increase federal, state, and local tax revenues by eliminating individual mortgage interest tax deductions, without raising tax rates
• Force the banks to sell their good loan assets to cover their bad loan losses, instead of forcing the taxpayer to buy their worst loans, and increase liquidity for new loans to those who need them
• Allow the free market economy to work through the crisis rather than resorting to socialism
• Not increase the national debt nor the money supply as a bailout would do and contribute to inflation
• Allow the individual home owner to the freedom to become their own banker with the money they earn, reducing America’s dependence on bankers, and changing America from renters and borrowers to homeowners and savers
The merits of this simple plan, the Mortgage Investment bill, for saving the economy, instead of trillions of dollars for a Wall Street bailout which will socialize the finance industry, are obvious and would benefit everyone involved. The individual gets more disposable income and a chance to live debt free, the capital markets get needed liquidity, the government collects more taxes and collects them sooner at the expense of the bankers, the housing market gets more demand, and the general economy gets a much needed boost for the next few years.
Democrats should like this plan because they can claim that it lets the wealthy pay for this mess. Republicans should like it because it increases disposable income, which has the same effect the same lowering taxes. The average voter should like it because it addresses all segments of the economy with a huge economic stimulus package, not just Wall Street, and costs nothing while helping to pay off the national debt and potentially fixing Social Security.
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Wizard
Dollar Goes Down Along with Bailout Plan [view article]
I don't know what knowledge base the author is using, but I,m tired of hearing that the price of the dollar is the independent variable upon which all else depends. First the decline of the dollar was blamed for the increase in the price of a barrel of oil, but we've seen the price of oil go up today as the value of the dollar is marketedly up and its price fell in the last two weeks as the dollar went up,.second we've heard from many pundits that what was buoying our markets was foreign exports because our dollar was so cheap, third we've heard that passing this recue package is good for the economy even if we print more money which should devalue the dollar. No one wants to understand that what drives the value of the dollar is cash flow in and out of the country as measured by the current account. Other drivers are the stability of the country and the purchase of our assets[ and we have the largest amount of assets on the planet]. Further we still have the largest gross national product by far. For you who want to live in Sweden, a beautiful country, know that 40% of the population is Muslim and in a generation they will be the majority due to the low birth rate of the rest of the population. Those of you that think we are a greedy bunch of Americans, should produce what your per capita aid is to other countries from americans and this government and tell me where your sons and daughters are buried in this country defending americans. The current account deficit could almost be reduced to zero, if we didn't import 12,2m/ barrels of oil from opec and Canada and others and if we matched our Corporate tax rate with most of the other developed countries in the world. A long term cure is to use our own resources of oil and natural gas and renewable energy to fix the problem and stop dwelling on the value of the dollar as the independent variable ReplyDollar Goes Down Along with Bailout Plan [view article]
one problem-the dollar is soaring Reply