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jasonxctf

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QUOTE (Rex Kicka** @ Aug 10, 2011 -> 01:46 PM)
French banks have 350 billion dollars exposure to Italian bonds, I guess. And French banks are taking a hit this week.

The entire structure of the actions on the PIGS countries from the European Central Bank has been geared towards protecting the French and German banks at the expense of the rim countries. Actually having the ECB buy up the bonds of those countries is the first move they've made that doesn't protect those banks on the backs of the citizenry.

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Im thinking that you will see the DJIA dance around 10-11k for the next few days at least because it looks like every time there is good value people are buying, but then people are getting out as it creeps up because no one wants to buy the high.

 

Itll be interesting to see what happens tomorrow, but based on the graphs youd imagine that there would be a rally, then a sell off and maybe end with a rally.

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Of course not, none of this makes any sense. Which is why Im much more favorable towards buying than selling. I just dont think that S&P's downgrade was more of a political statement than a true economic statement. You just cant convince me that the US (who to the best of knowledge has never defaulted on any debt payment) is all of a sudden a bigger credit risk.

 

Especially when you consider other nations that stayed as AAA (and considering Buffett said that US should be AAAA http://www.novinite.com/view_news.php?id=130921)

Edited by Soxbadger
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QUOTE (Soxbadger @ Aug 11, 2011 -> 05:17 PM)
Of course not, none of this makes any sense. Which is why Im much more favorable towards buying than selling. I just dont think that S&P's downgrade was more of a political statement than a true economic statement. You just cant convince me that the US (who to the best of knowledge has never defaulted on any debt payment) is all of a sudden a bigger credit risk.

 

Especially when you consider other nations that stayed as AAA (and considering Buffett said that US should be AAAA http://www.novinite.com/view_news.php?id=130921)

The problem is, this clearly isn't a reaction to anything done by S&P, it's much more of an acknowledgement that the general economy sucks pretty much everywhere, there's increasing risk of things getting worse (Europe), and neither the fed nor Congress are willing to take steps to help.

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QUOTE (Soxbadger @ Aug 11, 2011 -> 04:17 PM)
Of course not, none of this makes any sense. Which is why Im much more favorable towards buying than selling. I just dont think that S&P's downgrade was more of a political statement than a true economic statement. You just cant convince me that the US (who to the best of knowledge has never defaulted on any debt payment) is all of a sudden a bigger credit risk.

 

Especially when you consider other nations that stayed as AAA (and considering Buffett said that US should be AAAA http://www.novinite.com/view_news.php?id=130921)

 

I wonder if Buffets statement's after a big event have been put to the test somewhere because it seems like at the beginning of any bad spell they get him on TV saying how he is bullish on everything, and then the market falls apart. I remember it distinctly in Sept 08.

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QUOTE (southsider2k5 @ Aug 11, 2011 -> 05:29 PM)
I wonder if Buffets statement's after a big event have been put to the test somewhere because it seems like at the beginning of any bad spell they get him on TV saying how he is bullish on everything, and then the market falls apart. I remember it distinctly in Sept 08.

This doesn't count?

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Unless the US has a bunch of European money (not to my knowledge) a European fiasco would (imo) result in foreign entities putting money in the US markets because they would presumably be far safer.

 

As for the general economy, thats just razzmatazz (and damn thats actually a real word). As long as the US has a general population growth, does not have scarcity of land/materials, the economy is going to grow. There may be down times, there may be recessions, but there would have to be a significant change in the dynamics of the world for the US to just drop off the face of the earth.

 

 

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At one time rubber, coal, etc were the most important resource in the world. Petroleum has had its day in the sun, but nothing lasts forever. The reason the US is still dependent on oil is because you can buy oil cheaper than you can make other options. As soon as the economic incentives turn the other way, youll see electric cars, etc. In terms of resources you have China/USA (maybe Canada/Russia), just isnt an overwhelming concern, because in reality the US has a lot more oil in its borders, we just have decided not to use it.

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I dont think I ever said otherwise. Just merely the US has oil and if a worst case scenario happened (Us looses access to all foreign oil) the US, unlike UK, France or many other AAA nations, actually has oil within its borders and could access it if necessary.

 

Once again why the US is a far more stable economy.

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