Reducing the worries of US Dollar destruction

[Buraku]

[Buraku]

In the long run I expect a weaker US Dollar vs Yen


Paulson's Testimony: Is He For Real?

http://seekingalpha.com/article/97067-paulson-s-testimony-is-he-for-real


FBI probing collapsed firms

http://ukpress.google.com/article/ALeqM5jC9B3hXIT24kNiYvwxyBQZw_LZCw

the printing press will be going crazy soon

[Buraku]

[Takechanpoo]

[Iraira]

I am so happy to be witness to Uncle Sam's death.

Ready to start fending for yourself, Takechan?

[pheyton]

Paulson has around $700 million worth of stock in Goldman. It is being reported that a large amount of $$ would have been given to Goldman. Can you say conflict of interest? Both Paulson and Bernake should be fired. Once again we have "Heck of a job Brownie".

History has shown throwing money at these failing banks won't work, it will only prolong the inevitable. See Japan and The Great Depression:
http://www.economicpopulist.org/?q=content/people-are-asking-wrong-question
The real bailout is for foreign banks and people like Paulson who have large amounts of money invested in these companies.

The pressure on the dollar is immense right now and will get worse no matter what the Congress decides to do. The fundamentals of America's economy are weak and there are other, stronger markets for people to move their money during this crisis.

[TFG]

"Yen takes a beating declining after an intense US-International deal on currency manipulation".

This certainly is news to me, sitting here all day trading Yen!!

[Greji]

I am so happy to be witness to Uncle Sam's death.

Just hold your breath Take. It will be happening shortly....

[Buraku]

[pheyton]

Wow, a bank run in HK? There was also a bank run on Washington Mutual, something like 15billion pulled out in the past month creating it's insolvency. Pretty scary cause I use to bank with them.

As the $ goes, so does the world, for some time anyway.

There really is no safe market to be in for the next few months because there are going to be huge fluctuations in currencies. Gold and Silver, have been and always will be money. I think they are the safest place to be until some of this shit subsides. Silver is quite low from it's earlier high of $20.

[TFG]

Heeeee, it is ironic that I have sat here all day waiting for the $ to break down to the 104.50 level.
Looks like that may occur later today when certain markets open.

[Buraku]

http://search.japantimes.co.jp/cgi-bin/nb20081018n4.html
Japan's economy is facing rising "downside risks" as the global financial crisis intensifies, Bank of Japan Gov. Masaaki Shirakawa said Friday.

Economic growth will remain "sluggish for the time being," Shirakawa told an annual meeting of credit cooperatives in Tokyo.

"We're concerned that Japan will face negative effects should the overall global economy deteriorate significantly," he added.

Japanese stocks plunged 23 percent this month on concern that a global recession will weaken exports, the main driver of the economy's expansion.

Shirakawa said a rise in bankruptcies in Japan's construction and real estate sectors has raised the cost of credit, although the financial system remains "stable overall."

Japanese business failures are up by 34 percent from last month which is the largest increase in over 8 years.


The United States national debt clock broke
http://blogs.wsj.com/economics/2008/10/09/sign-of-the-times-2/


not enough numbers to hold your ever increasing family debt.

[GuyJean]

.. The United States national debt clock broke
http://blogs.wsj.com/economics/2008/10/09/sign-of-the-times-2/


not enough numbers to hold your ever increasing family debt.

I think they fixed it]Wall Street banks in $70bn staff payout[/B]
http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking

Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.

Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government's cash has been poured in on the condition that excessive executive pay would be curbed.

Pay plans for bankers have been disclosed in recent corporate statements. Pressure on the US firms to review preparations for annual bonuses increased yesterday when Germany's Deutsche Bank said many of its leading traders would join Josef Ackermann, its chief executive, in waiving millions of euros in annual payouts.

The sums that continue to be spent by Wall Street firms on payroll, payoffs and, most controversially, bonuses appear to bear no relation to the losses incurred by investors in the banks. Shares in Citigroup and Goldman Sachs have declined by more than 45% since the start of the year. Merrill Lynch and Morgan Stanley have fallen by more than 60%. JP MorganChase fell 6.4% and Lehman Brothers has collapsed.

At one point last week the Morgan Stanley $10.7bn pay pot for the year to date was greater than the entire stock market value of the business. In effect, staff, on receiving their remuneration, could club together and buy the bank...

:confused:

GJ

[Buraku]

[Buraku]

US needs exit strategy to avoid Japanese disease

http://business.theage.com.au/business/us-needs-exit-strategy-to-avoid-japanese-disease-20081218-71b2.html

The four most dangerous words in economics are "this time it's different". Only, in Japan's case, things actually are.

Louis Vuitton and Nomura Holdings tell the story. Odd bedfellows, admittedly, yet their fortunes say much about Japan's vulnerabilities as global growth slides.

The French luxury brand has long been a Japanese favourite. Japan is LVs most lucrative market, and good luck finding a Japanese woman who doesn't have at least one of its bags in her closet.

LV scrapped plans for a 12-story flagship store in Tokyo's ritzy Ginza district as Japans prospects worsen.

Japan's biggest brokerage, meanwhile, is having a dodgy run with its investments, including a $US302 million ($428 million) loss from the Bernard Madoff fiasco. That's not huge relative to Nomura's capital base, yet it's part of a pattern of bad bets on bond insurers, hedge funds and Iceland.

LV's woes speak to the evaporation of consumer sentiment. Nomura's get at escalating risks to Japan's financial industry. Yes, Japanese institutions are healthier today than a decade ago. But they're only as sound as the economy in which they operate, and Japan's is losing its footing.

US worse off

The US is even worse off, as evidenced by the Federal Reserve copying Japans zero-interest rate policies. By cutting its benchmark rate from 1% to as low as zero, the Fed is heading down the path the Bank of Japan did a decade ago.

The trouble is, the journey hasn't gone as planned. The BOJ is under pressure to cut its benchmark rate back to zero from 0.3%. There's a better-than-not chance it will do just that tomorrow at the end of a two-day policy meeting.

Yet a return to zero would do more to offer a cautionary tale for the Fed than stimulate Japans economy.

Japans ultra-low rates haven't paid off as planned because banks hoard government bonds. Even when Japan was experimenting with "quantitative easing", the liquidity it created largely sat on banks balance sheets. Holding bonds was safer than risking another bad-loan crisis....