Financial News

[kapkomet]

Please point me to the right currency to look at then, where oil and commodity prices are dropping substantially right now.

 

 

That's kind of the point - they know what would happen with QE2, and it's happening. Oil's up 22% since then, I wonder why that happened? Oh, it's pent up demand all of a sudden, right?

[southsider2k5]

Please point me to the right currency to look at then, where oil and commodity prices are dropping substantially right now.

 

None of the currencies you pointed out has been free from this practice to some extent or another.

[southsider2k5]

By the way, everyone in the modernized world wants China to release its currency from peg. And eventually, due to its own issues, they will have to. That alone will help the rest of the world.

 

If they release from the dollar fully, their economy will collapse into massive inflation. Hell MASSIVE in all caps.

[kapkomet]

If they release from the dollar fully, their economy will collapse into massive inflation. Hell MASSIVE in all caps.

 

 

It has, but they mess with the #'s. That's why IMO you're seeing some of the work start to move again and remember, these people work where the state tells them to (kind of like here before too long... )

[southsider2k5]

It has, but they mess with the #'s. That's why IMO you're seeing some of the work start to move again and remember, these people work where the state tells them to (kind of like here before too long... )

 

It is not a free floating currency.

[Balta1701]

None of the currencies you pointed out has been free from this practice to some extent or another.

Then please point one out for me where oil prices are dropping.

 

Because if oil prices are going up in all of them, then it can't be the "Weak dollar" that's doing it.

[Balta1701]

That's kind of the point - they know what would happen with QE2, and it's happening. Oil's up 22% since then, I wonder why that happened? Oh, it's pent up demand all of a sudden, right?

Would you say that the economic forecasts since QE2 was announced have improved, stayed the same, or gotten worse?

[southsider2k5]

Then please point one out for me where oil prices are dropping.

 

Because if oil prices are going up in all of them, then it can't be the "Weak dollar" that's doing it.

 

Once you get outside of the biggest currencies, they are pretty much dependent on the Dollar, the Euro or the Yen for their valuation because of either export or import levels to those market places.

[Y2HH]

Then please point one out for me where oil prices are dropping.

 

Because if oil prices are going up in all of them, then it can't be the "Weak dollar" that's doing it.

 

It's a contributing factor, which you cannot dismiss.

 

Oil prices rising 22% over the last few months is not because people are suddenly using X% more oil in relation to that exact rise in price...if you really believe that's the ONLY cause, I have some beachfront property in Canada to sell you.

 

There are MANY factors that drive commodity prices upward in addition to demand, and the value of the dollar happens to be of them.

Edited December 29, 2010 by Y2HH

[southsider2k5]

Once you get outside of the biggest currencies, they are pretty much dependent on the Dollar, the Euro or the Yen for their valuation because of either export or import levels to those market places.

 

And the biggest factor being that crude oil is traded in dollars.

[Balta1701]

And the biggest factor being that crude oil is traded in dollars.

Oh come on, this is just getting sad. It doesn't matter what the international exchange unit is for oil. A lower value for the dollar relative to other currencies would mean that we'd get less oil per dollar whether oil was priced in dollars or in any other unit.

[Balta1701]

It's a contributing factor, which you cannot dismiss.

 

Oil prices rising 22% over the last few months is not because people are suddenly using X% more oil in relation to that exact rise in price...if you really believe that's the ONLY cause, I have some beachfront property in Canada to sell you.

 

There are MANY factors that drive commodity prices upward in addition to demand, and the value of the dollar happens to be of them.

Of course you can't translate a 22% rise in oil prices to a 22% rise in oil consumption, that's just silly. No one would say that oil consumption dropped 50% between June and December 2008. That's the inelasticity in the oil markets hitting you.

 

If demand for oil is slightly above supply, but it takes a substantial cost increase to push demand back downwards, then you're going to get a substantial cost increase.

[Y2HH]

Of course you can't translate a 22% rise in oil prices to a 22% rise in oil consumption, that's just silly. No one would say that oil consumption dropped 50% between June and December 2008. That's the inelasticity in the oil markets hitting you.

 

I edited the post long before reply. It may not be 22% to 22%, but it's relation matters, but my point was, it's not the ONLY factor involved.

 

There are many factors that affect the price of oil, these being discussed are just a few of them.

Edited December 29, 2010 by Y2HH

[kapkomet]

Well, the Euro being at $1.66 at the time in 2008 didn't help the $147. bbl price. Just saying.

 

[southsider2k5]

Oh come on, this is just getting sad. It doesn't matter what the international exchange unit is for oil. A lower value for the dollar relative to other currencies would mean that we'd get less oil per dollar whether oil was priced in dollars or in any other unit.

 

What's really sad is that I wasted my time, again. You have no idea what you are talking about.

[Balta1701]

What's really sad is that I wasted my time, again. You have no idea what you are talking about.

I can cite people who say the exact same thing about anyone who says what you said about oil being traded in dollars.

[NorthSideSox72]

I have to side with Y2HH here - the idea that the inflation in oil prices is JUST tied to currency fluctuation, or that its JUST tied to ANY single thing is sort of ridiculous. There are any number of factors at play here.

 

[mr_genius]

I have to side with Y2HH here - the idea that the inflation in oil prices is JUST tied to currency fluctuation, or that its JUST tied to ANY single thing is sort of ridiculous. There are any number of factors at play here.

 

agreed.

[NorthSideSox72]

UE claims drop sharply (34k) to 388k, lowest since July 2008, beating expectations.

 

425k is generally the threshold where job growth begins (below that mark), and 375k is the number for where the gains are enough to bring down unemployment in any measureable way. The single readings (minus an outlier) and moving average have been below 425k for a while now, and it appears we may be approaching the 375k level. BTW the peak in March 2009 was 651k.

 

Pending Home Sales come in at 9am today.

[bmags]

ftr, i appreciate your aggregation of daily financial news, ns.

[Balta1701]

UE claims drop sharply (34k) to 388k, lowest since July 2008, beating expectations.

 

425k is generally the threshold where job growth begins (below that mark), and 375k is the number for where the gains are enough to bring down unemployment in any measureable way. The single readings (minus an outlier) and moving average have been below 425k for a while now, and it appears we may be approaching the 375k level. BTW the peak in March 2009 was 651k.

How much of that is the blizzard though?

[NorthSideSox72]

How much of that is the blizzard though?

The article I saw about it said they asked someone from the reporting agency about seasonal or other effects, and they felt that there wasn't a significant shortage due to any of that. Hard to say for sure though. We'll see next week.

 

[Rex Kickass]

How much of that is the blizzard though?

 

The blizzard came on Sunday. It would affect next week's numbers, not this week's numbers, no?

[jasonxctf]

The blizzard came on Sunday. It would affect next week's numbers, not this week's numbers, no?

 

i would think so.

 

also, don't most people file either via phone or email? I don't think you have to go in anymore, do you?

[jasonxctf]

NEW YORK (AP) -- People are starting to buy homes again, lifting a battered industry that is bracing for its worst sales year in more than a decade.

 

Signed contracts to purchase homes rose in November, the fourth increase in five months. That should give the housing market a boost in the first few months of the new year because there's usually a one- to two-month lag between a sales contract and a completed deal.

 

Economists cautioned that a major reason for the jump is that people are buying foreclosed homes, which sell at steep discounts and weigh on the broader market. Another obstacle is the sudden spike in the 30-year fixed mortgage rate, which only weeks ago had fallen a 40-year low.

 

Still many economists expect sales to gradually rise next year as the economy adds more jobs and home prices stabilize.

 

"Sales appear to be picking up and we expect better sales in the next several months," said Patrick Newport, a housing economist at IHS Global Insight. "A lot of that is because the job market is improving."

 

The National Association of Realtors said Thursday its index of sales agreements for previously occupied homes increased 3.5 percent last month from a downwardly revised reading in October. Contract signings were up in the West and Northeast, but down in the South and Midwest.