A Strong Dollar Policy and China a Currency Manipulator?
23/01/09 20:28
Investor risk aversion and uncertainty have returned
despite the Obama administration taking shape
throughout the week. Earnings releases have remained
downbeat for the fourth quarter earnings season as a
major blue chip company missed expectations today.
Treasury Secretary nominee Geithner won approval from
the Senate Finance Committee and now faces a
confirmation vote in the Senate, even though he
dodged personal tax payments and is being called to
task on it. Most of us would reap severe penalties,
jail time and public humiliation in such a case. The
endorsement of a tax evader does not bode well for
the Obama administration. Consider that you wake up
each day and work very hard only to pay his healthy
salary. In written responses to questions from his
recent hearing, Tim Geithner confirmed the Treasury's
strong dollar policy. I'm not sure whether he was
directed to say that or if he even knows what he is
saying. "A strong dollar policy," since when has a
stated political disposition overridden the overall
market forces, proven in what we see today with QE
efforts.
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It's Just Time - Martin Armstrong
22/01/09 16:19
From: Craig Carmichael
Martin Armstrong is the former chairman of Princeton Economics International. He became a millionaire at the age of 15 when working with rare coins and stamps. He gained worldwide notoriety for his proprietary work on economic cycles and has advised many governments and corporations throughout the world. He became the highest paid economist in the world and seemed to have everything going for him. However, in 1999, he was indicted on charges of bilking Japanese investors all the while he was claiming his innocence. Before going to trial, he had been held in contempt for an unprecedented 7 years before finally pleading guilty in 2007. He has adamantly claimed he has been railroaded and his arguments definitely merit consideration. Be that as it may, it is a shame that he has had to spend time in jail wasting away a previously very productive life and a brilliant mind. He has just written a paper from jail titled "Its Just Time". This is well worth reading and will enlighten you to his fascinating cycle work and how amazingly accurate it has been throughout the years. It is a little "rough" around the edges as he did not have the technological capabilities afforded to him as he would outside of prison.
Enjoy!
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Martin Armstrong is the former chairman of Princeton Economics International. He became a millionaire at the age of 15 when working with rare coins and stamps. He gained worldwide notoriety for his proprietary work on economic cycles and has advised many governments and corporations throughout the world. He became the highest paid economist in the world and seemed to have everything going for him. However, in 1999, he was indicted on charges of bilking Japanese investors all the while he was claiming his innocence. Before going to trial, he had been held in contempt for an unprecedented 7 years before finally pleading guilty in 2007. He has adamantly claimed he has been railroaded and his arguments definitely merit consideration. Be that as it may, it is a shame that he has had to spend time in jail wasting away a previously very productive life and a brilliant mind. He has just written a paper from jail titled "Its Just Time". This is well worth reading and will enlighten you to his fascinating cycle work and how amazingly accurate it has been throughout the years. It is a little "rough" around the edges as he did not have the technological capabilities afforded to him as he would outside of prison.
Enjoy!
Read the Article
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Roubini Predicts U.S. Losses May Reach $3.6 Trillion
20/01/09 17:43
By Henry Meyer and Ayesha Daya
Jan. 20 (Bloomberg) -- U.S. financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is effectively insolvent," said New York University Professor Nouriel Roubini, who predicted last year's economic crisis. "I've found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers," Roubini said at a conference in Dubai today. "If that's true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis." Read More...
Jan. 20 (Bloomberg) -- U.S. financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is effectively insolvent," said New York University Professor Nouriel Roubini, who predicted last year's economic crisis. "I've found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers," Roubini said at a conference in Dubai today. "If that's true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis." Read More...
Market fails to hold early risk rally
20/01/09 09:38
Ref: UBS
The market failed to hold to an early risk rally overnight as worries over the longer-term health of the banking sector weighed on news of a new rescue package for the UK's financial services industry. European bourses are broadly in the positive in what will likely be a quiet trading session as the US is on holiday. Nevertheless, it does appear that most governments and central banks are on the cusp of launching a new set of initiatives to guarantee confidence in the banking sector and more importantly, to ensure is provided to those who need it for the good of the economy.
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The market failed to hold to an early risk rally overnight as worries over the longer-term health of the banking sector weighed on news of a new rescue package for the UK's financial services industry. European bourses are broadly in the positive in what will likely be a quiet trading session as the US is on holiday. Nevertheless, it does appear that most governments and central banks are on the cusp of launching a new set of initiatives to guarantee confidence in the banking sector and more importantly, to ensure is provided to those who need it for the good of the economy.
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EUR likely to fall as rate cuts become apparent
08/01/09 15:49
Ref:UBS
Investors looking for an extensive early year rally were brought down to earth yesterday as signs of a deepening recession became apparent and investors pared risk positions. . Early-year rallies in risk, especially during recession years as markets attempt to price in an early recovery, are often hazardous and a swift realisation of circumstances is consistent with the view that the market will remain structurally risk-averse in the coming quarters. This risk aversion will fuel USD and JPY strength.
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Investors looking for an extensive early year rally were brought down to earth yesterday as signs of a deepening recession became apparent and investors pared risk positions. . Early-year rallies in risk, especially during recession years as markets attempt to price in an early recovery, are often hazardous and a swift realisation of circumstances is consistent with the view that the market will remain structurally risk-averse in the coming quarters. This risk aversion will fuel USD and JPY strength.
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