Yo.
I know I've been absent for a good while, quit trading forex for lack of competence and I was sucked in by the 2008 crisis. But I keep eyes on the markets everyday.
Now comes the US debt ceiling crisis and I'm watching it like a hawk. After hours of TV and internet, I came down to the conclusion that the US debt itself is not the problem. Politicians are the problem.
I don't intend to discuss politics here. On what concerns us, there is a BLACK cloud coming fast and it's called "uncertanty". As we speak, CNBC's headline is "Debt Fallout: Even Market Pros Don't Know What to Do Now"
For those keeping money on the run, be it on the forex market or stocks or commodities, we are about to go into uncharted territory and here's why:
The US is been the safe heaven for decades. Everytime there's a crisis of any sort, investors flee to the US Treasury or the US Dollar. This time, there is no clear safe heaven (many are betting on CHF and Gold). But in the end of the day, nobody knows anymore what is "safe". There is lack of reference.
Many articles are talking about "what would happen if the US defaults" and nobody knows the answer.
BUT THIS IS THE WRONG WAY TO LOOK AT THINGS!
It's of no importance (for inverstors) whose checks won't go out, who will be left hanging. The real question is that the entire world, all investors will "shoot first, ask later", meaning, cash in and driving all markets crazy before figuring out what's going on.
Companies will halt investment and - very likely - fire at the thousands before knowing what's going on.
It's a crisis of credibility. It's all about what the heck is the rest of the world going to do once we lose the USA as THE REFERENCE. Europe? No. Swiss? Not so fast, they don't want a strong CHF. Who? Oil? Okay... let's all send oil to $200 and THEN you will see prople being fired in bulk.
Solution:
I'm no expert. I don't see, however, another way but cutting spending and - sorry, but true - raising taxes. I mean it. Rasing taxes badly.
In the other hand, it's come the time when American people will be held account of what they've done on elections: They gave a zero-debt post-Clinton USA to George Bush and the rest is well known. It's time for the American people to get the bill and pay it.
And paying more attention on what to do on future elections.
Sorry for the huge post. I think It's about time we have a Debt Crisis Thread going on here, because, my friends... NOBODY KNOWS what kind of a world we're going to find on morning Aug 3rd.
I know I've been absent for a good while, quit trading forex for lack of competence and I was sucked in by the 2008 crisis. But I keep eyes on the markets everyday.
Now comes the US debt ceiling crisis and I'm watching it like a hawk. After hours of TV and internet, I came down to the conclusion that the US debt itself is not the problem. Politicians are the problem.
I don't intend to discuss politics here. On what concerns us, there is a BLACK cloud coming fast and it's called "uncertanty". As we speak, CNBC's headline is "Debt Fallout: Even Market Pros Don't Know What to Do Now"
For those keeping money on the run, be it on the forex market or stocks or commodities, we are about to go into uncharted territory and here's why:
The US is been the safe heaven for decades. Everytime there's a crisis of any sort, investors flee to the US Treasury or the US Dollar. This time, there is no clear safe heaven (many are betting on CHF and Gold). But in the end of the day, nobody knows anymore what is "safe". There is lack of reference.
Many articles are talking about "what would happen if the US defaults" and nobody knows the answer.
BUT THIS IS THE WRONG WAY TO LOOK AT THINGS!
It's of no importance (for inverstors) whose checks won't go out, who will be left hanging. The real question is that the entire world, all investors will "shoot first, ask later", meaning, cash in and driving all markets crazy before figuring out what's going on.
Companies will halt investment and - very likely - fire at the thousands before knowing what's going on.
It's a crisis of credibility. It's all about what the heck is the rest of the world going to do once we lose the USA as THE REFERENCE. Europe? No. Swiss? Not so fast, they don't want a strong CHF. Who? Oil? Okay... let's all send oil to $200 and THEN you will see prople being fired in bulk.
Solution:
I'm no expert. I don't see, however, another way but cutting spending and - sorry, but true - raising taxes. I mean it. Rasing taxes badly.
In the other hand, it's come the time when American people will be held account of what they've done on elections: They gave a zero-debt post-Clinton USA to George Bush and the rest is well known. It's time for the American people to get the bill and pay it.
And paying more attention on what to do on future elections.
Sorry for the huge post. I think It's about time we have a Debt Crisis Thread going on here, because, my friends... NOBODY KNOWS what kind of a world we're going to find on morning Aug 3rd.
