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Please EURO Stop it..You are Embarrasing yourself.

  • #21
  • Oct 5, 2008 5:46am Oct 5, 2008 5:46am
Hey..Then there is Karma....what goes around comes around...Guess that does not apply to the great USA..what goes around...comes around with government bail out package....Guess..this time American bad guys karma took bail out
  • #22
  • Oct 5, 2008 6:02am Oct 5, 2008 6:02am
Heh... European banks are failing... European countries are socialist...

It's funny how Europe always is contradicting the American left... Americas financial problems are because of deregulation, but some how European countries which the left looks and gazes upon into their dreamy eyes and tells America we suck and Europe is so much better and then this crap happens, but still its the free markets fault.
  • #23
  • Oct 5, 2008 6:25am Oct 5, 2008 6:25am
Just goes to show you that no matter what political games you play, sh*t happens. You can't predict it, you can't usually prevent it, you can't stop the wheels from spinning... all you can do is pick up the pieces quicker than the other guy and get back to business.

Europe would be wise to learn from our mistakes. Instead of waiting for it to get worse like we did, act now and save yourselves the headache.
  • #24
  • Oct 5, 2008 6:36am Oct 5, 2008 6:36am
Guys, I am sure,that this bailout plan would not work,because it ia unable to work. Why? Emagine, you have got a huge stop loss and suddenly somebody after your great stress and depair offer you and bailout you, so to say take your stop loss and save your money. You are happy,but you will think afterwards 100 times before you will lend your money again, before youe will take new risk upon yourself. So, it means that banks will hoard money received from bailout and not lend these money again. They will stay aside and wait in order to see where this situation would come. Then again no money on market, no credit, no economic development. Terrible situation,taking in account that national debt went more than 70% of GDP because of this bailout. The main kee to get money credit money flow again is stop falling of housing market prices. But how can these prices stop to fall if no one bank would lend money to peaple and businessies after this very wrong bailout? So, I am sure,that this crise have just started and it will develope in much much worth situation.
  • #25
  • Oct 5, 2008 8:08am Oct 5, 2008 8:08am
Quoting Rabid
Just goes to show you that no matter what political games you play, sh*t happens. You can't predict it, you can't usually prevent it, you can't stop the wheels from spinning... all you can do is pick up the pieces quicker than the other guy and get back to business.

Europe would be wise to learn from our mistakes. Instead of waiting for it to get worse like we did, act now and save yourselves the headache.
Well actually I'm pretty sure it was preventable. Its called privatization.

Fannie Mae and Freddie Mac shouldn't have existed and because them being GSEs they got so huge so that when they fail the system gets eff'd up.
  • #26
  • Oct 5, 2008 8:27am Oct 5, 2008 8:27am
Quote
Well actually I'm pretty sure it was preventable. Its called privatization.

Wouldn't have helped. Privatization even caused a few of the failures.

Quote
Fannie Mae and Freddie Mac shouldn't have existed and because them being GSEs they got so huge so that when they fail the system gets eff'd up.

Fannie and Freddie's failure didn't really do all that much to the system, mostly it's been the big bank failures that are causing the liquidity crunch. But GSEs served, and will in the future serve again, a very vital purpose... to reduce the risk of mortgages and encourage investment in the nation's housing supply.

If you're still thinking "yea but it's all xxxx's fault" then you're missing the big picture.

The market moves in simple time cycles, every 4 to 5 years (generally speaking). The only question is... how deep will it go and what will be the catalyst? You can't stop it, and you can't predict the catalyst in advance. All you can really do is pick up the pieces afterwards.

Quote
Guys, I am sure,that this bailout plan would not work

You do realize it's not really a bailout, right? Basically you've got all these assets that were marked down because of a crashed market. Nobody planned for a market failure (and the resulting illiquidity), which should've been done... but that's hindsight. Either way, most of these assets have value. By providing a market for some of them we force a bottom. When those markets do re-open they'll have support for finding their fair value.

Quote
So, it means that banks will hoard money received from bailout and not lend these money again.

Laff. If that was how it worked, maybe. But it's not.

National debt did not go up 70%. That'd be over 7 trillion dollars. Missed a decimal place.
  • #27
  • Oct 5, 2008 12:28pm Oct 5, 2008 12:28pm
Quoting clockwork71
lol -

That Sir.....is a direct result of a lack of proper choices in this election. Since America is hooked on reality tv, I figure he's as good a shot as anyone else. (Flavor of Love and all.)

;-)
BS, Brett Michaels all the way.
Never underestimate the powers of the Force.
  • #28
  • Oct 5, 2008 12:33pm Oct 5, 2008 12:33pm
Quoting Rabid
But GSEs served, and will in the future serve again, a very vital purpose... to reduce the risk of mortgages and encourage investment in the nation's housing supply.
If that's the case we'll only come back around to this situation once again.

Let's think about this, if no one wants to go out and market loan packages or express mortgages to the extent that Fannie and Freddie were meant to, shouldn't it click with you that maybe the risk is there and that's why the banks don't want to? IE, the banks see it as a bad investment? If then you go on and forcibly create a market by government intervention, you're only baiting disaster. If there was a solid market premise there, you better believe that the banks et all would swoop in and create the market.
Never underestimate the powers of the Force.
  • #29
  • Oct 5, 2008 7:53pm Oct 5, 2008 7:53pm
Quote
Let's think about this, if no one wants to go out and market loan packages or express mortgages to the extent that Fannie and Freddie were meant to, shouldn't it click with you that maybe the risk is there and that's why the banks don't want to? IE, the banks see it as a bad investment? If then you go on and forcibly create a market by government intervention, you're only baiting disaster. If there was a solid market premise there, you better believe that the banks et all would swoop in and create the market.

Except the nation's economy can't survive w/o an effective housing market. Fannie was created as a housing liquidity backstop during the New Deal. So we've tried all of that before, it failed miserably. It's a case of the devil you know versus the one you don't. The lessons of history demonstrate that the free market doesn't always work the way it should, these institutions were created to smooth out that problem. (What happens to the housing supply when banks don't want to lend money anymore? Not good...)

And for the most part, they worked. The only problem was carrying too many subprime mortgages, but even that wouldn't have sunk the ship if the CMO market hadn't collapsed. Nobody foresaw, and nobody could foresee, the complete collapse of the CMO market. It wasn't about subprime mortgages, it was about poor liquidity. Even if all of the subprime mortgages in the world were reduced to 0, the remaining assets are more than enough. The problem was that when the subprimes started slipping, everyone started selling everything, and the market broke down. Panic-induced collapse.

To compare, imagine an infinite spread on the eurusd. What would that do to the spot monetary supply?

The result was a bunch of undervalued securities that had paper losses beyond their assets. Not a big deal, they're GSEs, loan them enough money to keep the floating and startup a trust to provide liquidity to the mortgage markets. Problem solved. Except we didn't solve it, we let it run for another year and sat on our hands. People kept trying to ignore it... "oh the market will fix it." No, it won't. When the patient is this sick he'll either need a doctor or an undertaker. Either way, someone's going to have to do something.

And while we argued over "bailouts" the boat was sinking. I'm glad someone finally had the leadership balls to break thru public misunderstanding and get something done. It wasn't a perfect solution, and I don't love the idea of another trillion in debt, but at least it's something.

And to revert back to the topic at hand, the euro is being traded on this knowledge. All of these big funds w/ no where to go... flight to quality and all that, they see a chance that the US might stabilize (and the markets do tend to pre-price in anticipation) and they're taking it. Buy dollars, ride it out, start building new positions.

Quote
That Sir.....is a direct result of a lack of proper choices in this election. Since America is hooked on reality tv, I figure he's as good a shot as anyone else. (Flavor of Love and all.)

I once asked my girlfriend about the flavor of love... she said it was a bit bitter and salty.
  • #30
  • Oct 5, 2008 8:33pm Oct 5, 2008 8:33pm
Quoting The Jedi
BS, Brett Michaels all the way.

He's my pick for VP. ;-)
  • #31
  • Oct 5, 2008 9:37pm Oct 5, 2008 9:37pm
Quote
He's my pick for VP. ;-)

Tila Tequilla for Secy of State?
  • #32
  • Oct 5, 2008 9:47pm Oct 5, 2008 9:47pm
Quoting Maarten999
Wow! Is that really true?! Guess fundamentals don't care at all in the forex market!

Anyway, I enjoyed the post! It made me laugh! Good job

Maarten
You forget the biggest rule in fundamentals.

1. Never bet against the dollar
2. When things get tough the most secure currency in the world is the dollar
3. Guess where everyone runs to when things get tough............. yup USD
  • #33
  • Oct 6, 2008 12:24am Oct 6, 2008 12:24am
Quoting nanningbob
You forget the biggest rule in fundamentals.

1. Never bet against the dollar
2. When things get tough the most secure currency in the world is the dollar
3. Guess where everyone runs to when things get tough............. yup USD
And all of that can change...with stuff like what's going on.
Never underestimate the powers of the Force.
  • #34
  • Oct 6, 2008 2:44am Oct 6, 2008 2:44am
Quoting The Jedi
And all of that can change...with stuff like what's going on.
Actually no, if the dollar goes down so does everything else. That is why in tough economic times investors run to the dollar, it is the safest place for your money and the big investors know that. Most Americans think their news is really bad, it is worse overseas.
  • #35
  • Oct 6, 2008 3:47am Oct 6, 2008 3:47am
Quoting nanningbob
You forget the biggest rule in fundamentals.

1. Never bet against the dollar
2. When things get tough the most secure currency in the world is the dollar
3. Guess where everyone runs to when things get tough............. yup USD
Whew..

Thank god someone here gets it NB. lol

If it were for any other reason we'd have seen more significant corrections already. Nothing says 'panic' as well as the current charts.

I'm sure we'll plenty more incorrect threads about the subject though.
Bundy's status today: "Waiting..."
  • #36
  • Oct 6, 2008 4:10am Oct 6, 2008 4:10am
Quoting nanningbob
1. Never bet against the dollar


So all those people that were short USD over the past 7 years were doing it all wrong?
  • #37
  • Oct 6, 2008 5:06am Oct 6, 2008 5:06am
Quoting fierceman


So all those people that were short USD over the past 7 years were doing it all wrong?

Wrong read on the market guy. Things werent tough then, they are now.
  • #38
  • Oct 6, 2008 5:20am Oct 6, 2008 5:20am
Quoting nanningbob
Wrong read on the market guy. Things werent tough then, they are now.
Oh, I thought never meant NEVER .
  • #39
  • Oct 6, 2008 1:53pm Oct 6, 2008 1:53pm
Today the EUR/USD has reached its lowest since a year. Right now is over 1,3483 support which match with the Fibs level. Plus european countries have put together bailouts to solve troubled financial institutions in Germany, the UK, France, Belgium, Ireland and Iceland. What do you say? I think this is going up again!!
  • #40
  • Oct 6, 2008 1:57pm Oct 6, 2008 1:57pm
Quoting nanningbob
You forget the biggest rule in fundamentals.

1. Never bet against the dollar
2. When things get tough the most secure currency in the world is the dollar
3. Guess where everyone runs to when things get tough............. yup USD

Ive been selling the dollar for about a month straight! (long term..small positions).

Look at the dow down 700 points yet the USD getting stronger???

People are putting money back in the USD.
M4X............ Hedging My Way To Profits!
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