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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
Greek/German 10-year government bond yield spread at 464 bps, narrowest since April 20
Still!
ECB: No Comment On Trader Speculation That Theyve Already Started Buying Government Bonds
But am expecting later today. Where they will talk up euro and they will also explain the auterity measure adopted by Greece and in-line with PIIGS states.
@INGbalek Greece benefits for now they will meet their payments on may19th, payments will be made back through European council and to IMF through bond repayments. so far bond spread narrow euro rallies, im expecting 13500 end of this month. So far a pretty busy morning.
There are many different investment vehicles one can use to invest in gold. The key aspects that we as investors and traders look for are the vehicles relationship and correlation with gold prices, and how much that correlation is or isnt leveraged to the gold price. More leverage is not always the objective of an investor, one may be looking for less sensitivity to the gold price, or simply to match golds performance. The value of common stocks relative to Gold is about to accelerate in the opposite direction the Larry Kudlow and Jimmy Jack Cramer crowd are expecting. The concept of relative wealth is an important one for Gold bulls to comprehend and embrace, as it allows them to calculate gains in something besides unstable paper debt-backed fiat currency, which is a worthless measure of value. In other words, it negates the need to worry about the inflation-deflation debate.
The best example of this mental calculation of value is the Dow to Gold ratio. The average American, if they still have a job and any savings left, puts their excess money in stocks, real estate and/or government bonds. This is the absolute wrong thing to do, but the average American paperbug has been indoctrinated beyond what seems possible. Like members of the Jim Jones cult, most Americans are paperbugs and all-too-ready to drink the apparatchik Flavor Aid being served in public schools, on the nightly news and by mainstream financial publications that employ ignorant commentators who preach "stocks for the long haul and everything will always be OK or better than OK".
The bottom line is a simple but powerful concept: Gold will continue to increase in value relative to general stocks, real estate and government bonds, as it has over the past decade. This isn't rocket science, it is simply the swinging pendulum of financial history. Trust me when I tell you that you don't want to "buy and hold" Gold forever as an investor with a finite lifespan (unless you're certain to staty alive in the next 10 years...).
For now Euro still BUYs
but gold doesn't tank but it must ... else theory is inconsistent and something dark looms ..
im not such an advanced person in these macro things..
Can anyone tell me where those BIG amounts of money ends??? who benefits...for example,,,those eur610 bln as help from imf and other EU nations>>>who will greece pay them? back to those countries which lent them but with interest? or to private corporations, firms,...etc.../???
thanks...
If USD becomes "rare" ... well end of story.
I wonder now why gold as a by definition illiquid form of cash does not tank...
May 10 (Bloomberg) -- The U.S. Federal Reserve will restart its emergency currency-swap tool by providing as many dollars as needed to European central banks to keep the continents sovereign-debt crisis from spreading.
The swaps with the European Central Bank, Bank of England and Swiss central bank will allow them to provide the full allotment of U.S. dollars as needed, the Fed said late yesterday in a statement in Washington. A separate swap line with the Bank of Canada will support as much as $30 billion, the Fed said, and the Bank of Japan said it approved reactivating its U.S. line. The swaps were authorized through January 2011.
The Fed action was a complement to European policy makers announcement of an unprecedented loan package worth almost $1 trillion to stop a crisis that threatened to shatter confidence in the euro. The U.S. central bank on Feb. 1 had closed all swap lines opened during the last crisis, triggered by the subprime- mortgage meltdown in 2007.
Hildebrand noted the SNB will not allow such a development to turn into a new deflation hazard and is acting decisively to prevent an excessive appreciation. Hildebrand also called on European leaders to conclude negotiations over Greeces aid package rapidly. April consumer price inflation data will be released on Thursday. U.S. dollar offers are cited around the CHF 1.0930 level. The euro moved lower vis--vis the Swiss franc as the single currency tested bids around the CHF 1.4320 level while the British pound appreciated vis--vis the Swiss franc and tested offers around the CHF 1.6595 level.
EES had a favorite group of pairs EUR/USD, EUR/CHF, USD/CHF. The Swiss Franc used to mean something it meant finance, the old guard. The CHF was backed 40% by physical gold. Now, the SNB will not allow the CHF to appreciate because it would have a negative impact as its safe haven currency status. Whether thats true or not, we have decided to stop trading the CHF. With the volatility in the EUR and USD due to the Greek crisis, the uselessness of trading the CHF is highlighted even more. Trading multiple pairs can have the advantage in a volatile market of hedging in and out of positions by trading more than 1 pair that share the same currency. However, because the EUR/CHF did not move by more than 10 pips in the last 20 hours, including EUR/CHF in any strategy is useless.
There is a trade here, when the EUR/CHF is revalued the move takes time and traders can jump on the trend and ride the movement. A trend following system could be loaded to capture this trend when it happens. Or you could simply look at the chart and see it breaking out of its controlled trading bands.
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