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Financial Markets, Subprime, & The Credit Crunch

Central banks around the world have been pumping trillions of US dollars into banking systems in an effort to keep money flowing as a result of the global financial crisis of 2008. Please use this forum to discuss the causes and implications of the current situation in the financial markets.

Note that various articles on the housing markets of the UK, USA and Australia are recorded at House Price Crash Discussion Forums
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PosterMessage
ssaines
 02 Sep '10  02:59 : 0 recs

Condor: Obama's measures are a failure. In all fairness to the man, he is just continuing what he inherited. I'd say the *US'* measures are failures. Bailing out banks was where it all started to go wrong.

Jungle:
This trade works very well so long as the currency market remains stable.
And therein is a glitch. Most nations intervene to balance their own currency. The design may be good in theory, in practice, it leaves a lot to be desired.

Reality can be a bitch.
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3dc
 01 Sep '10  19:11 : 0 recs

Obamanomics Failing to Create Jobs
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Jungle
 25 Aug '10  14:03 : 0 recs

guinealand?
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Merlin
 25 Aug '10  13:35 : 0 recs

guinealand ?
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Jungle
 25 Aug '10  13:08 : 0 recs

''The reason why the Yen is rising is not because or Japanese families repatriating their Yen it is because the international carry trade is unwinding. The carry trade is a standard play by hedge funds. They borrow Yen at very low interest rates sell the Yen and use the money to invest in USD and Euro markets.

This trade works very well so long as the currency market remains stable. However what can be seen is that traders are unwinding their positions and buying back Yen to close off their short Yen positions. This is a self reinforcing event as the higher the Yen rises the more positions will need to be sold to cover the short Yen exposure which will lead to more yen being purchased. The other side of this transaction will be sales of equities so expect a stock market crash in the very near future.''

Yes, interesting comment.

You finance gurus in the house agree or disagree with above statement?
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Thoughtful
 23 Aug '10  12:52 : 0 recs

Will Poundland increase their prices because of inflation ?
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3dc
 12 Aug '10  00:31 : 0 recs

Did the TARP money really get paid back in full?
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bankrupt old farmer
 07 Aug '10  19:18 : 0 recs

Seems to have all the makings of the classic negative plateau.
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Warren BuffetCar
 07 Aug '10  07:50 : 0 recs

Scary US jobs chart

WBC
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Warren BuffetCar
 07 Aug '10  07:48 : 0 recs : edited 1 time : last edit 07 Aug '10  07:49

Another reasonable inference would be that senators know more about economics than the average bud-swilling donut-munching American.

They could be insider trading of course, but its quite a leap to infer it from those figures.I'd have expected to see them outperform the great unwashed by much more if such abuse was widespread.

WBC
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3dc
 06 Aug '10  01:29 : 0 recs

A study of the results of stock trading by United States Senators found they on average beat the market by 12% a year. U.S. households on average underperformed the market by 1.4% a year. A reasonable inference is Senators were using insider information. For THEM, it is not illegal.
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Warren BuffetCar
 05 Aug '10  10:47 : 0 recs : edited 2 times : last edit 05 Aug '10  10:49

Prudence,

Much as I think Krugman is a clown, I do think you have to take that comment with a pinch of salt. It looks awfully like a troll to me. No one who believed in their cause would say:

"We progressives need to stick together and embellish our talking points without someone from the outside pointing out fallacies in our ideology"

That sounds to me who like someone who believes that "progressives" arguments are fallacies - and that wouldn't be a "progressive".

If you believe in something, you don't see fallacies in it.

And I'm saying that as someone who thinks Krugman's views are wrong.

WBC
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prudence
 04 Aug '10  10:47 : 0 recs

Great link, 3dc. I found this particularly amusing........On July 23, Latrina commented, "Who is this Sean from Florida? He takes everything that [the] Professor [says] and shreds it, piece by piece. He shouldn't be allowed to post his comments on this blog since he seems to be winning all the debates. We progressives need to stick together and embellish our talking points without someone from the outside pointing out fallacies in our ideology."
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Thoughtful
 04 Aug '10  09:37 : 0 recs : edited 1 time : last edit 04 Aug '10  09:38

Gold is soft and doesn't work harden ? In fact if you have gold you don't need to work hard ?
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3dc
 03 Aug '10  14:55 : 1 rec

Paul Krugman Gives Up
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3dc
 03 Aug '10  03:26 : 0 recs

In the cold war Fort Knox among other things held heroin reserves in case of nuke war ... so the leaders could exit without pain. I assume besides gold there are tons of opiates long gone bad and in need of proper disposal....
They, have a pretty extensive target range too.
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zorro
 31 Jul '10  21:56 : 0 recs : edited 2 times : last edit 31 Jul '10  21:59

3dc

Welll, what do you expect? The public might start asking awkward questions like how much gold is there really in Ford Knox and is it all tungsten, or how much QE are they really doing, or whether California is more broke than Greece. You can't have that...

What did you expect, for heaven's sake? Glasnost, or what?

Cue for all good US citizens to evoke the Founding Fathers...
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3dc
 28 Jul '10  18:57 : 0 recs

So much for transparency.
Under a little-noticed provision of the recently passed financial-reform legislation, the Securities and Exchange Commission no longer has to comply with virtually all requests for information releases from the public, including those filed under the Freedom of Information Act.
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Thoughtful
 23 Jul '10  17:56 : 0 recs

I agree Motty stock markets are very nervous, just like Thoughtful ?
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Motty
 23 Jul '10  12:19 : 0 recs

Trying to read into stock markets at a moment may not be wise. Hedge funds and all are withdrawing after sell-offs to liquidate theirs all over the world now. Seems so many need to have something like cash. Well, I am not sure if this is a sign of deflation.
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