Forum
Posts by "speculator"
804 Posts Total by "speculator":
782
Posts by Anonymous "speculator":
G-8 finance ministers said they will start planning exit strategies for when sustainable growth returns. Its still too soon to roll back budget deficits and bank bailouts, they said after a meeting in Lecce, Italy.
We discussed the need to prepare appropriate strategies for unwinding the extraordinary policy measures taken to respond to the crisis once the recovery is assured, the ministers said in a statement yesterday after two days of talks. There are signs of stabilization, though the situation remains uncertain.
Signs the worst slump since World War II is moderating are prompting central bankers and investors to warn that inflation will accelerate if governments dont cut back. U.S. Treasury 10- year note yields last week reached 4 percent for the first time since October.
There is a distinct shift in tone from the G-8, said Eswar Prasad, an economist at the Brookings Institution in Washington. Still, rising interest rates due to concerns about fiscal deficits and prospects of inflation could choke off a nascent recovery.
what implication will the above have on the currency market? could this be dollar positive if exit strategies are being talked about. Or is this some kind of aid to curb interest rate expecations and keep yields and the dollar stable so further quantitative easing is not required.
listening to jim rogers, he feels lot worse to come but commodities will remain best investment i.e. anything but dollar. but then again if worst is to come then surely stocks wont hold on recent gains.
clear as mud!
rising bond yields will surely put pressure on global recovery and stock prices as cost of capital increases. we may get a shock and result in a flight to safety?