Forex
Forex Market Implications of Fannie Mae and Freddie Mac
Growing fears on the part of stock investors and forex traders that mortgage backers Fannie Mae and Freddie Mac may collapse and have to be taken over by the US government contributed to a wild trading day in the US stock market and the forex market on Friday.
Fannie Mae and Freddie Mac shares have been hammered this year as the mortgage and US housing market crisis have become worse and worst witrh no end in sight. Together Fannie Mae and Freddie Mac insure almost fully 50% of the mortgages on American homes which runs into the many trillions of dollars. The two implicitly US government backed companies have had their shares prices hammered over the past year as losses on their loan portfolios mount. Their shares have now lost over 75% of their value and may not have bottomed out even at truly distressed prices.
12Jul2008 | taipan | 0 comments | Continued
Bernanke Rings the Forex Market Bell
The Chairman of the US Federal Reserve Bank, Ben Bernanke, rings the forex market bell at a speech he made yesterday by satellite TV to an economic conference in Barcelona Spain. Helicopter Ben finally spoke out about the sad condition of the US Dollar and said the following:
“In collaboration with our colleagues at the Treasury, we continue to carefully monitor developments in foreign exchange markets. The challenges that our economy has faced over the past year or so have generated some downward pressures on the foreign exchange value of the dollar, which have contributed to the unwelcome rise in import prices and consumer price inflation. We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations and will continue to formulate policy to guard against risks to both parts of our dual mandate, including the risk of erosion in longer-term inflation expectations.
4Jun2008 | taipan | 0 comments | Continued
Euro Dollar Trading Above 160.00 is Warning
The long anticipated target of 160.00 Euro Dollars to the US Dollar was hit and briefly exceeded in forex trading today. That’s quite a long way from the par price that the Euro started trading against the US Dollar in 1999 and should be taken by US policy makers as a warning that all is not well with US policies on multiple fronts.
The Euro surged to above 160.00 after two governors of the ECU central bank stated that the EC may need to raise interest rates in order to keep inflation under control.
The euro was introduced to world financial markets as an accounting currency in 1999 and launched as physical coins and banknotes on 1 January 2002.
22Apr2008 | taipan | 0 comments | Continued
Forex? What is Trading Forex All About?
Forex? What is it, anyway?
The forex market
The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover. (click here to read full market background by Easy-Forex™).
Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That’s all.
How does one profit in Forex?
Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market.
19Mar2008 | taipan | 0 comments | Continued
US Federal Reserve Bank Sacrifices Dollar
The US Federal Reserve Bank has made it clear to currency traders that the US dollar will be sacrificed in a desperate effort to prop up the US economy.
In testimony before congress last Tuesday and Wednesday, The Fed Chairman, Ben Bernanke, spoke primarily of further downside risks to the economy while stating that he thought that inflation, while obviously increasing, could be controlled. I wonder if our Ben the helicopter man has taken a look at how the sinking dollar is affecting commodity prices.
Neither Ben Bernanke nor President Bush seem capable of speaking about a recession that is probably already underway. They both state that a recession will be avoided.
19Mar2008 | taipan | 0 comments | Continued
Worldwide Financial Panic of 2008
We are uncomfortably close to the beginning of the great worldwide financial panic of 2008. You had better buckle your seat belt, put on your crash helmet, and get ready for a bumpy, and for many, very unpleasant ride.
“We are going to see economic times the likes of which no living person has seen,” Trends Research Institute Director Gerald Celente said, forecasting a “Panic of 2008.”
“The bigger they are, the harder they’ll fall,” Celente said in an interview with New York’s Hudson Valley Business Journal.
Celente, who correctly forecast the subprime mortgage financial crisis and the dollar’s decline a year ago and gold’s current rise in May, told the newspaper that the subprime mortgage meltdown was just the first “small, high-risk segment of the market” to collapse.
19Mar2008 | taipan | 0 comments | Continued
Hello Eugene,
Thanks for taking the time to read the post and for your comment.
Sadly, most Americans are still in a ...
Quite right,too.
When confronted by such experts I immediately ask why, if they're so clever, they're working ...
A very interesting and informative post, Taipan, even if depressing.
I'm certain I don't fully understand all the intricaties of ...
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