World economy talk

[Monseratto]

fannie mae and freddie mac downgrade to aa+. Can't get a AAA rating in your guarantor is an AA+.

[Monseratto]

Another country that is about tobe DOWNGRADED...

AAA Rated France May Be Vulnerable to Downgrade Following Cut to the U.S. - Bloomberg

[tidus1203]

Dapat pati UK din tangalin na sa AAA... Only Canada, Germany, Australia should be AAA cause they are surplus countries and don't need to print just to pay up.

[Monseratto]

gold hits US$1,715. Now corrected to US$1,702.

[uls]

what downgrade?

US 10 yr yield




2 yr yield 0.24%
5 yr yield 1.10%
10 yr yield 2.39%
30 yr yield 3.73%

[uls]

Bank of America credit default swap

[uls]

S&P starts downgrading municipalities

[tidus1203]

Grabe yesterday was the worst single day drop since 2008. Fact it feels like 2008.

Dow down 634 pts.
NAS down 175 pts (SHOCKER!!)
SPY down 80 pts.

Very historic indeed. Di na ito correction folks, di ganito ang correction. BEAR MARKET NA ITO!!!

[Monseratto]

NYMEX Crude=$81.00
Brent Crude=$102.00
GOLD=$1,720.00

[uls]

good freaking morning

so much for the downgrade huh?

US treasury yields lower across the curve

flight to liquidity

[uls]

FOMC statement tonight (2:15 pm NY time)

everybody will be listening closely for hints of QE3

[Ry_Tower]

FOMC statement tonight (2:15 pm NY time)

everybody will be listening closely for hints of QE3

Do you think it would be enough to stem the tide or talagang recession na ito?

Again I hope it will not have a major impact to us in the short term.

[Monseratto]

Geez...oil is really getting a beating. Lost US$ 5 dollars in 2 hours. Gold and cash is KING!!!

NYMEX Crude



While GOLD gained US$ 20 at the time...



In worst indices so far, HK Hang Seng lost all its gains for the past year... 7% on this session alone!

[uls]

Do you think it would be enough to stem the tide or talagang recession na ito?

Again I hope it will not have a major impact to us in the short term.

QE only reflates asset prices

QE doesnt lower unemployment

QE only makes things more expensive

[uls]

^^ intervention gone

[uls]

nag below parity AUDUSD

[safeorigin]

yip, QE creates the illusion that they are getting richer because money is being printed when in fact it just devalues the dollar and makes stuff priced higher.

one has to remember that money isn't real wealth ;)

[uls]

yip, QE creates the illusion that they are getting richer because money is being printed when in fact it just devalues the dollar and makes stuff priced higher.

one has to remember that money isn't real wealth ;)

QE2 drove up stock prices

banks bought bonds from the US Treasury, then the Fed bought the bonds from the banks

the banks then used the money to buy equities

Bernanke Aug 27, 2010 speech

http://www.federalreserve.gov/newsev...e20100827a.htm

A first option for providing additional monetary accommodation, if necessary, is to expand the Federal Reserve's holdings of longer-term securities.

that's QE2

Fed then announced $600B QE2 on Nov 3 2010

last day of QE2 June 30 2011

no more support for stock prices

[tidus1203]

With the recent mass selling, people are again thinking of banning SHORT SELLING hahaha

They hate it when other people make money hahaha

One such country thinking of the ban is South Korea and I won't be surprised of talk of such happens in Europe and the US...

[Monseratto]

Brent crude broke US$100...

Brent dives to 6-month low below $99, U.S. crude at $76 | Reuters

(Reuters) - Brent crude plunged to a six-month trough below $99 a barrel on Tuesday in a two-session drop of more than $10, after a U.S. credit downgrade intensified fears about a global slowdown in demand for energy, sending commodities markets tumbling.

Brent crude fell as much as $5 to $98.74 a barrel, the lowest intraday price since February 8, and was down $4.06 at $99.68 by 0200 GMT, down from an April peak above $127. U.S. crude fell $4.83 to $76.48, after touching $75.71, its lowest since September 2010.

"I'm surprised how far it has fallen in all markets, this is panic," said Jeremy Friesen, a commodity strategist at Societe Generale in Hong Kong.

"Demand hasn't pulled back in the past day, it's just speculation that it will, but as precipitously as markets are falling, we don't have time to wait for economic data. There are some serious risks to the global economy, so there will be expectations that policymakers will be aggressive in shoring up confidence."

Investors await the Federal Open Market Committee meeting on Tuesday for clues to whether the U.S. central bank might ease monetary policy further.

Analysts warned oil prices could fall further if a second recession takes hold, but both Merrill Lynch and Goldman Sachs maintained their 2012 price forecasts.

"We believe that WTI crude oil prices could briefly drop to $50 under a recession scenario," Merrill Lynch said in a note, but it maintained its 2012 average forecast for U.S. crude at $102 and its forecast for Brent next year at $114.

Brent broke below the key 200-day moving average on Monday, extending a correction that has taken more than 21 percent off prices from their April peak.

China's inflation rate, which analysts fear could curb Beijing's ability to stimulate demand to offset a global slowdown, turned out to be higher than expected.

Annual inflation in China rose to 6.5 percent in July, its highest since June 2008, putting the central bank in a bind as it tries to rein in prices without dragging down an economy facing increasing threats from abroad.