He's good for the horror economics but what does it mean? Forced liquidation on a massive scale. I don't know if it's significant but WTI Crude is up 10% and the US Dollar against a basket of currencies - swiss, euro, stg, aud, canadian dollar, yen etc. is also up http://quotes.ino.com/chart/?s=NYBOT_dx
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Folks, if this translates into Eastern Europe where there are severe instabilities already brewing literally everything in the financial world could come apart "all at once."
The worse news is that if this happens Bernanke will have killed us (in the US) by extending those swap lines all over the planet during the last six months. These will become utterly uncollectable and they are massive, in the many hundreds of billions of dollars.
To those who are reading this, I hope if you're in the markets you are prepared for extreme levels of violence. You must expect that the authorities will try to arrest the destruction if they are able, but you must also be prepared for the possibility that we have reached a "critical mass" point beyond which "duck and cover" is the only winning strategy.
Unfortunately.
I hope I'm wrong; this is going to be a long night.
Watch the Euro crosses in particular; if there is an "ignition" sort of event you won't miss it (a ~500 pip near-vertical move would not surprise, on top of the 150 pips we've already taken tonight.)
Watch the Euro crosses in particular; if there is an "ignition" sort of event you won't miss it (a ~500 pip near-vertical move would not surprise, on top of the 150 pips we've already taken tonight.)
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When day trading currencies, the term PIP is used often. A pip, which stands for "price interest point," represents the smallest fluctuation in the price of a currency. This is similar to the "tick" concept for stocks.
Watch the Euro crosses in particular; if there is an "ignition" sort of event you won't miss it (a ~500 pip near-vertical move would not surprise, on top of the 150 pips we've already taken tonight.)
The dollar is the big Kahuna or the Reserve Currency. Therefore all the other currencies tend to move in the same direction relative to it. So if the euro is up against the dollar then it is lightly that the yen, pound and other currencies are up practically the same amount.
So the euro crosses is a glance accross the rates of the euro not against the dollar but how the euro is trading against the yen pounds, aussie etc etc. Normally these differences will be much less and therefore tend to be less traded.
What is being said is that for example if the euro is up a lot against the pound then something is afoot. That is stating the obvious in financial jive talk.
The Yen was up around 20% against the dollar this last year, and this may be a contributing factor in the economic woes of that country. GDP declined in the last quarter by over 12% annualised.
It is a bit like the Euro and sterling problem. Japan cannot afford to lose competitive position against Korea, China etc.
Shrinking markets and the competition gets fierce.
For myself I would argue that the Yen and other Asian currencies were and are under valued.
Watch the Euro crosses in particular; if there is an "ignition" sort of event you won't miss it (a ~500 pip near-vertical move would not surprise, on top of the 150 pips we've already taken tonight.)
The dollar is the big Kahuna or the Reserve Currency. Therefore all the other currencies tend to move in the same direction relative to it. So if the euro is up against the dollar then it is lightly that the yen, pound and other currencies are up practically the same amount.
So the euro crosses is a glance accross the rates of the euro not against the dollar but how the euro is trading against the yen pounds, aussie etc etc. Normally these differences will be much less and therefore tend to be less traded.
What is being said is that for example if the euro is up a lot against the pound then something is afoot. That is stating the obvious in financial jive talk.
Good thanks. If the Euro was up then what would be afoot ? Because the dollar is strengthening .... but that's not going to last is it ??? And investors will pile into the Euro is it ???
Mike the Doomtuber is in on the game now too and he has a bunch of (credible?) links to the likes of the FT, Telegraph, WSJ on this business with the Eastern European countries. Apparently they will default and cause a bit of banking bother around the place (in Europe - anything to do with the Euro ??)
The Horror Economics is getting more Horrifically Economical by the day.
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