Currency Crisis?

[GoNRA 12]

Ron Paul was on Fox a few minutes ago talking about Greece. They think it will be a world issue.

 

What would you do if money was worthless? or how would you prepare for it? would you consider this a SHTF crisis?

[Malsua 1,422]

Ron Paul was on Fox a few minutes ago talking about Greece. They think it will be a world issue.

 

What would you do if money was worthless? or how would you prepare for it? would you consider this a SHTF crisis?

 

The Dollar is getting stronger right now. It's up to 1.261:1 euro right now. It was 1.277 at open today.

 

I watch FX because I travel to Europe for work. My company however buys Euro hedges and this year I think they got them at 1.24. Someone in finance isn't very happy about it because it's was a cash cow when the Euro appreciated every year.

[Maksim 1,504]

Greece is an issue of obligations.... even if they default... it is not going to be a big deal. It primarily impacts europe.

 

Only people here that it would impact big time are those that own Greek GO's (general obligation bonds) or any fixed income. If you own greek equities, which I doubt, they would surly go up.

 

think Argentina, Venezuela, Russia. It is actually good for the dollar if it happens. this is not the first.

 

the biggest issue is politicians being mongers, and the media trying to sell advertisement.

[Maksim 1,504]

I take a portion of the comment above back.... start saving some ammo.... just in case.

 

Today, in my eyes we had a big issue. Electronic trading based on fear, and then auto trade programs, dropped the markets down as much as 10%.

[bbk 188]

Maks, and/or other financial analysts, what do you think of this article: http://www.bloomberg.com/apps/news?pid= ... bfBKW.uKn4

It states that China could "crash" in the next 9-12 months, and the person's reasoning behind it.

 

I'm not an economists, but my father has been doing it forever and currently heads up a financial analysts division for Thomson Reuters-- so, I've been picking his brain about what's been going on. He doesn't seem as worried in regards to the big picture, but his application of the concepts doesn't include the social/political factors.

[Maksim 1,504]

China will slow down, the chinese market will correct even more... ie financial crisis 2. Short term, rough, longer term, there is no stopping the chinese powerhouse.

 

Key difference between emerging economies like Russia, India, and China.... and developed economies like the united states, greece, etc. Credit.

 

Credit = leverage. In the BRIC's (brazil, russia, india, china), there is very little use of credit, people do not blow money on crap they cannot afford to pay off. Furthermore, they are actually net positive. Longer term, I am quite bullish on them.

 

Shorter term, everyone is subject to corrections.

 

I am actually quite a bit more worried about Europe, in regards to the EU (how long the French and Germans are willing to carry the rest on their backs), and the United States... we are not out of the woods yet, real estate is yet to bottom, and the fundamental problems have not corrected.

[DirtyDigz 1,812]

...Today, in my eyes we had a big issue. Electronic trading based on fear, and then auto trade programs, dropped the markets down as much as 10%.

 

Heh, you think?

 

All the High Frequency Trading shops just algorithmed themselves right into a regulatory crackdown:

 

From Bloomberg:

 

1. Citi about to do press conf and full-court press on news TV and Bloomberg is saying that Citi will say that their total futures Dollar Volume today was only $9 Billion, and will insist that the $16 Billion shove had to come from elsewhere -- Citi is planning on a doing a flood of press tonight proclaiming their innocence, and have warned media to be careful about tying Citi with any improper act. Citi is swearing that they played no role -- Citi about to do a big round of press on news shows starting immediately.

 

2. Gov't regulators are now said to be digging deeply and are looking to suspend licenses.

 

I look forward to seeing what the equity market is like without a bunch of computers passing 1 share a million times a second between them...

 

JOE SALUZZI, CO-MANAGER OF TRADING AT THEMIS TRADING IN CHATHAM, N.J.:

"The markets have been leaking all day, but it should not have dumped like that. Everyone walked away. There is no real liquidity out there, it's all machine and phantom."

[Maksim 1,504]

I doubt we will get an actual answer. I am on the phone now with friends who are fund managers, and traders at citi and elsewhere to see what if anyone knows, but in my opinion, it was just computer trading doing what it was supposed to, if market goes down, sell it more. a bunch of quant programs triggered all the rest.

 

If it did last longer, the markets would of been halted though.

[DirtyDigz 1,812]

I'm waiting to see if a VERY profitable trade that supposedly executed for me today is going to get busted or not. Went long a leveraged bear ETF about 2:00, about 2:40 I put a trailing stop on it and at 3:00 it turned into a market order that just sat there without executing and half an hour later my broker crashed.

[DirtyDigz 1,812]

Just reading this:

 

Nasdaq will be canceling ALL trades -60% of the price it was trading or if you gained 60% from where you bought it. (Bloomberg TV)

 

There were a lot of stocks that traded at 1 cent and ZERO today.

 

The entire bid just disappeared from the market (albeit briefly)

[Maksim 1,504]

yep, just saw that.... the entire market was weak today, so I have no doubts that electronic hedge trades and quant funds accounting for this.

[AtlanticCounty 0]

Maks, and/or other financial analysts, what do you think of this article: http://www.bloomberg.com/apps/news?pid= ... bfBKW.uKn4

It states that China could "crash" in the next 9-12 months, and the person's reasoning behind it.

 

I'm not an economists, but my father has been doing it forever and currently heads up a financial analysts division for Thomson Reuters-- so, I've been picking his brain about what's been going on. He doesn't seem as worried in regards to the big picture, but his application of the concepts doesn't include the social/political factors.

 

If you want some more perspective on some vulnerable areas in China google -Jim Chanos China-. This guy has some very interesting things to say about China especially the commercial real estate market in China.