a man of great vision and one to be taken very, VERY seriously.
All P.I.G.S. fed and ready to fly
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a man of great vision and one to be taken very, VERY seriously.
That's the part I have trouble understanding.
If Greece has it's own currency, it would be absolutely hammered now, but as a result their exports I would assume increase. Whilst it comes with it's own problems, at least that would be a way out of the mess (to a degree), where as now with the fixed currency they have to endure years (decades?) of pain.
Could you not make the same argument about the USA? Some how the 50 states have been able to fudge along for quiet sometime now. The major difference being a (mostly) common language and that they have had longer stint being "united" instead of trying to kill each other.
and they'd be forced to decrease imports, especially euro priced ones. A weak Dracma? wouldn't allow it.
More expensive imports, and the export advantage of a devalued currency, would act as incentive for them to increase production, for domestic consumption and exports. Indeed, many German manufacturers might even relocate to PIIGS to utilize the cheaper labor force, as the US has done with Mexico.....
Not quite yet Jonril. The US, even with their black and hispanic sub cultures, are united in language, history, and culture compared to the EU.
exactly, there'd be generated inflation to erode the debt. the Dracma would lose value against other currencies and exports from Greece would become more attractive and hep to prop up the economy.
but they can't do that because the Dracma doesn't exist for trade anymore.
i hope the Euro falls on it's ****.
i dont - i bought a euro import car because i specifically forsore USD weakness and euro strength. oh what a difference a year or two makes! goes to show the dangers of currency trading
isn't this good for their economies?
A lower Euro will make imported products more expensive but it will make the Eurozone products cheaper in other countries and the Eurozone tourism industry should benefit from this as well.
IMO they should let their currency slide a bit more to make their economies more competitive and at the same time they should concentrate on reducing debt.
In a year or 2 it could be the other way around.
The US debt is still going up
that's my point.
it needs to fall.
it needs to fall.
Finally some examples of this:
the first as a trader:
http://www.cnbc.com/id/37209570
"(W)e are traders here, not investors, and traders listen to and watch the market, looking for signs of a changing environment," Gartman writes. "The environment has been changing; violence and volatility are everywhere. We want out. The sidelines look inviting
This from Gartman. Now Gartman does not have much of a retail following because his target market is mainly institutional investors. The Gartman letter is widely subsribed to by hedge funds and the top investment banks.
Now as an investor:
http://www.cnbc.com/id/37209789
Explaining the potential logic behind buffetts recent transactions.
Determination of being an investor/trader is so vital to the creation of appropriate riskopportunity settings.
In Gartman's letter he says:
"We want out...entirely," Gartman tells clients regarding the gold trade. "We wish we'd have been able to send (the letter) to everyone earlier this morning when exiting the trade was wiser, but we've a time table to stand by and we are few hours late in exiting...but exit we must...entirely...upon receipt of this commentary."
That was @ 10:15, shortly after POG started dropping till 2:00 while, we assume, his devotees exited. It then started climbimg again and closed abt $5 higher than when he made his call.
More importantly, What was the point of your post?
"We want out...entirely," Gartman tells clients regarding the gold trade. "We wish we'd have been able to send (the letter) to everyone earlier this morning when exiting the trade was wiser, but we've a time table to stand by and we are few hours late in exiting...but exit we must...entirely...upon receipt of this commentary."
That was @ 10:15, shortly after POG started dropping till 2:00 while, we assume, his devotees exited. It then started climbimg again and closed abt $5 higher than when he made his call.
More importantly, What was the point of your post?
the thought process, not the talk about gold.
For god sake sunfish, READ my posts, rather than just make than putting words into my mouth.
I NEVER SAID I HAVE A LOW OPINON OF TRADING.
I do have a low opinion of people who dont recognise HOW THEY ACT.
Why because they dont know how to play the game.
Both investing and trading is a game, but the rules are different.
If someone doesnt recognise there is a high probability that they dont place correct risk/opportunity screens in place.
Hence they have a very high probability of achieving sub standard long term returns.
I think Spain and Portugal are safe for now.
Regulation is coming and the hedge funds will soon be looking elsewhere to make a quick buck. Maybe they are shorting the AU$ now?
http://dealbook.blogs.nytimes.com/2010/05/19/do-funds-share-the-blame-for-new-e-u-rules/
http://news.bbc.co.uk/2/hi/business/8690770.stm
Germany have banned short selling already and hedge funds are adjusting their positions.
Perhaps markets will be less volatile from now on
http://www.independent.co.uk/news/b...ts-after-german-shortselling-ban-1977527.html
i am sure they are, especially as they know that other hedge funds that were playing the AU-US$ carry trade into long exposure aussie big banks/resources are trying to unwind. Last year this was an extremely profitable trade, this year its turning out to be a double wammy and everyone is heading for the exit at the same time.
But good for us local people with a bit of patience.
Interesting episode of lateline business last night 19/5/2010.
Source: Lateline Business, ABC
Video: http://www.abc.net.au/lateline/business/
Scroll to market volatility concerns business.
Source: Lateline Business, ABC
Video: http://www.abc.net.au/lateline/business/
Scroll to market volatility concerns business.
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