World economy talk

[uls]

the US and UK are doing the same thing coz their financial institutions are involved in the same sh*t

[tidus1203]

the US and UK are doing the same thing coz their financial institutions are involved in the same sh*t

Not only that! The same $**T the two countries share is their populace are drunk in spending and in a huge debt hole. The Euro which largely collerates to Germany is a net exporter, a net saver. We don't even have to talk about the Japanese and the Swiss...

[jeDi13]

Is this true?! EUR/PHP exchange rate now back to 70!! Good thing I held on to my Euros. I almost exchanged them to PHP when the rate was * 61. I guess I should be ready to head to the nearest bank when EUR/PHP exchange rate hits 75, or maybe even higher than 80.

http://finance.yahoo.com/q?s=EURPHP=X

And my USD, I already dumped them when the rate was * 49.

[tidus1203]

Very good, as always there are opportunities to make money even on bear markets you just need to know where to find it... By the way the Swiss Francs is the strongest currency right now... Good place to store some wealth given the Swiss' reputation for gold.

[uls]

is this bad?

[kinyo]

is the u.s. really going this bad?

http://www.infowars.com/?p=5938

[tidus1203]

is this bad?

The charts says it all. And yes don't you ever try to catch a falling knife cause Sterling is a falling knife. But its a cleaver against the Swiss Franc

[uls]

Kinyo,

You mean the one above your post?

that's not the USD, that's the GREAT british pound (GBP) against the euro

umm.. doesnt look so GREAT huh?

[uls]

The charts says it all. And yes don't you ever try to catch a falling knife cause Sterling is a falling knife. But its a cleaver against the Swiss Franc

GREAT british pound

not!

[uls]

Nothing is sacred these days

not even GE

S&P warns General Electric may lose AAA credit rating
1:24 PM, December 18, 2008

General Electric Co. has long prized its AAA credit rating. Today, Standard & Poor’s warned that GE might not hang on to that top grade.

That slammed the stock and helped pull the broader market lower, and dealt another blow to the image of GE Chief Executive Jeffrey Immelt.

S&P today revised its credit outlook on GE and the company's financial services arm, GE Capital, to "negative" from "stable." That means the ratings firm believes "there is at least a 1-in-3 possibility of a downgrade within the next two years," it said.

---

GE, GE Capital Ratings Outlook Cut to Negative by S&P
http://www.bloomberg.com/apps/news?p...yGk&refer=home

Dec. 18 (Bloomberg) -- General Electric Co., the biggest issuer of U.S. corporate bonds, has a one-in-three chance of losing its AAA credit rating in the next two years as earnings deteriorate, Standard & Poor’s said.

S&P cut the outlook on the company and that of its GE Capital finance arm to negative from stable. While the AAA ratings were left intact, S&P said in a statement today that it was concerned about cash flow and funding for the finance unit as global conditions worsen. GE Capital’s stand-alone rating, without parent support, would be A+, four levels below, it said.

this is a big deal

GE is always triple A

[tidus1203]

GE has always been a dead boat. I mean sure they are safe and stable so stable that their earnings were so predictable and their share movement so predictable that it didn't really generate capital gains for investors. But yes its a big deal that something as stable as GE is even considered for a downgrade in credit rating. I guess Exxon is the only BIG BLUE CHIP left that still seems strong...

[uls]

ohayoo gozaimasu

Bank of Japan May Cut Rate, Pump Funds Into Economy
http://www.bloomberg.com/apps/news?p...d8I&refer=home

Dec. 19 (Bloomberg) -- The Bank of Japan may trim interest rates today and introduce new ways of pumping funds into the banking system to bolster the ailing economy.

Governor Masaaki Shirakawa and his colleagues may lower the overnight lending rate from 0.3 percent, the second reduction in two months, economists said. The bank may also offer to buy more government bonds from lenders, start purchasing commercial paper from them and broaden the range of collateral it accepts.

[tidus1203]

Of course they don't want to lose the distinction of having the lowest interest rate among developed countries now that the US is lower than theirs I don't think that will stop the Yen's upward trajectory at all. Masyadong mabigat ang carry trade to even reverse it so simply even intervention will not stop it it will just slow it.

[uls]

BSP cut rates .5% pala no?

ngayon ko lang nalaman

[tidus1203]

Irrelevant Our financial markets here are so illiquid and so immature hell I don't even trade local securities its just a waste of time No offense meant, just the truth....

[ame="http://www.youtube.com/watch?v=7o1fvZIF4oM"]YouTube - Jim Rogers: 'Getting out of U.S. dollars' (12.15.08)[/ame]

Si idol pounding again on the US Dollar. Although matagal na syang bearish sa USD, this time he is really going all out!

[uls]

sa kakasunod ko sa nangyayari sa labas dito ko na alam ang nangyayari dito hehe

[tidus1203]

I don't blame you ang boring talaga ng Philippine financial markets, its just a waste of time... Better understand the more mature markets they are more meaningful...

[uls]

ya boring nga dito

---

konnichiwa

BOJ Cuts Rates, Pumps Funds to Ease Credit
http://www.cnbc.com/id/28304383

The Bank of Japan cut its key policy rate to 0.10 percent on Friday and moved to pump funds into the market to ease a corporate credit crunch as the yen's sharp rise and crumbling demand batter the economy.

[emanzano]

At first, i was in agreement that with the US printing their way out of this crisis, they will debase the value of their currency (although i just agreed in my head, although i didnt post it here). The concept of depreciation is based on "relativity", i.e., what is it depreciating against?

Now, the very essence of this thread is to get out of the USD because it's in a freefall. So we should expect that it will SIGNIFICANTLY fall against the Euro, Yen, etc. However, with Britain, Japan, and other countries also priming their own economies with more money, they will ultimately cancel each other out.

So you keep mentioning a "free fall" of the USD. How exactly do you define a "freefall?" Is it losing 10% vs the Euro? 10% in 6 months is hardly a freefall. I wouldnt even call a 20% decline in 6 months a freefall either.

If one of you could post a chart (sorry, i dont know how you guys could pick up these charts from websites, hope you could teach me) you will see that the Euro peaked against the USD back in July'08 at around USD1.56: Eu 1. Today, it's at 1.43:1, an 8% decline in 5months. But here's the kicker, the exchange rate a year ago (12/07) is almost exactly what it is today... 1.44:1. That's not exactly a freefall, huh?

Told you these guys know their chops.

And if i may venture further, i say that the USD will not depreciate against the Euro by more the 20% by end of 2009, lets say 1.72:1. Care to take my bet? Kahit "order whatever you want in starbucks that you could finish in one sitting."

Let's put our lunch money where our mouths are, whatya say?

[tidus1203]

Yeah I am not arguing against pitting paper money against paper money. They are all just printing it away anyway so in the long run more or less lang yan... While there are some paper money (fiat money) that might strive better than some (IMO the Yen and the Swissy) they will also depreciate against real assets... But are you willing to bet that in 5 years time that Gold price will remain the same? I am betting 5 years from now Gold will be $2000 who knows? Pero sigurado gold lipad yan, oil too and pretty much any real asset like land and agriculture.

FREE FALL AGAINST REAL ASSETS. Now I will bet on that!