Financial News

[Balta1701]

http://www.usatoday.com/money/economy/inco...te-sector_N.htm

Well, that's what happens when you yank the floor out from the economy and push unemployment to 10%.

[kapkomet]

Well, that's what happens when you yank the floor out from the economy and push unemployment to 10%.

 

 

GOVERNMENT SAVES! Go live in China. At least you'd get FREE health care.

[southsider2k5]

That is a big mental achievement for stocks to come back over 10k. Barring more bad news, they might have put in a bottom.

[kapkomet]

That is a big mental achievement for stocks to come back over 10k. Barring more bad news, they might have put in a bottom.

 

 

People don't want to lose their gains... it will take more then Greece to shake out the market at this point.

[bmags]

GOVERNMENT SAVES! Go live in China. At least you'd get FREE health care.

 

:lolhitting :lolhitting :lolhitting

[Texsox]

This debt crisis should have us looking in the mirror.

 

 

Exactly correct. Obviously we need another round of tax cuts.

[Y2HH]

Just remember that months ago I said the Euro was heading for disaster and you all called me crazy. Keep in mind that this is just beginning.

[NorthSideSox72]

Just remember that months ago I said the Euro was heading for disaster and you all called me crazy. Keep in mind that this is just beginning.

Someone called you crazy? I don't remember that. I have to admit that I didn't think the Euro would get hit THIS hard (or that the debt crisis would work in quite this way), but the inherent weakness was clear.

 

[Y2HH]

Someone called you crazy? I don't remember that. I have to admit that I didn't think the Euro would get hit THIS hard (or that the debt crisis would work in quite this way), but the inherent weakness was clear.

 

I tried to find the post where I said a EU crash was inbound -- I couldn't...but I recall people asking me why I would say something so absurd.

 

The problem with the EU from the start was that there was no way this could survive forever. They have no enforceable monetary policy and a number of nations using that as their base currency, which could, in effect allow one members carelessness to completely alter the value of the currency, which is what's happening.

 

50 separate governments (example) using the US dollar and while 45 of them are fiscally responsible, the other 5 can and will have a negative effect on it's value just by overspending and setting bond rates to lower/higher, etc...without one controlling body, if one guy messes up, it falls on everyone else (uninvolved in their affairs) to bail them out, even if they can't actually bail them out.

 

What we have here now is Greece asking for a bailout (amongst others) -- so now German citizens (or whoever helps bail them out) get to bail out a country that funds age 40 (or something absurd) retirement packages. Not for nothing, but there are people performing the SAME jobs in Germany until 60 years old, and now they get to fund/bail out a country that allows their citizens performing the same exact job to retire with pension/medical/etc at 40.

 

I'm sure that'll work long term!

Edited May 26, 2010 by Y2HH

[Jenksismyhero]

am I seeing this right? The Euro is now .81 to the dollar? Craziness. Might be changing my honeymoon plans in October...

[Balta1701]

am I seeing this right? The Euro is now .81 to the dollar? Craziness. Might be changing my honeymoon plans in October...

Unless something huge happened recently (similar to the 1000 point drop a few weeks ago) I don't think you're looking at that right.

 

Edit: Link.

[southsider2k5]

am I seeing this right? The Euro is now .81 to the dollar? Craziness. Might be changing my honeymoon plans in October...

 

If my math is right you are looking at how many Euro=1 Dollar, instead of the usual 1 Euro = how many dollars

 

[Jenksismyhero]

ugh. i'm an idiot. sorry!

[southsider2k5]

ugh. i'm an idiot. sorry!

 

No biggie. You usually don't see it expressed that way. Pretty much the only currency expressed that way is the Yen.

[Balta1701]

That is a big mental achievement for stocks to come back over 10k. Barring more bad news, they might have put in a bottom.

Link

China, which boasts the world’s largest foreign exchange reserves, is reviewing its holdings of eurozone debt in the wake of the crisis that has swept through the region’s bond markets.

 

Representatives of China’s State Administration of Foreign Exchange, or Safe, which manages the reserves under the country’s central bank, has been meeting with foreign bankers in Beijing in recent days to discuss the issue.

 

Safe, which holds an estimated $630bn of eurozone bonds in its reserves, has expressed concern about its exposure to the five so-called peripheral eurozone markets of Greece, Ireland, Italy, Portugal and Spain.

 

Any move by Safe would mark a significant change in direction, as Beijing has been trying to diversify away from the US dollar in recent years by buying a greater proportion of assets denominated in other currencies.

 

One investor said: “This is a big strategic shift. Last year, the Chinese were trying to reduce their exposure to dollar assets by buying eurozone assets. This would be a complete reversal.”

That got it.

[southsider2k5]

LinkThat got it.

 

China would make a great trader... always selling at the bottom.

[bmags]

who was calling you crazy for saying that greece would hurt the EZ?

[Balta1701]

China would make a great trader... always selling at the bottom.

"Goldman Sachs today announced that it has hired China as its chief financial officer".

[southsider2k5]

"Goldman Sachs today announced that it has hired China as its chief financial officer".

 

That'd be funny if it made sense.

[Balta1701]

That'd be funny if it made sense.

They already employ the "U.S. Treasury Department", so why not a whole country while they're at it?

[southsider2k5]

They already employ the "U.S. Treasury Department", so why not a whole country while they're at it?

 

Now that would have been funny.

[Balta1701]

This article seems to fit into that discussion we had a few months ago about how when LEH and AIG went down, one possible reason why was that their creditors were deliberately writing down the value of their securities too far to extract higher payments from those companies.

Lehman Brothers' bankruptcy estate filed suit against JPMorgan Chase Wednesday, alleging that the bank demanded billions of dollars more than it needed in the firm's final days contributing to Lehman's ultimate demise.

 

The suit, filed in the U.S. Bankruptcy Court in the Southern District of New York, contends that Lehman, which was scrambling to stay afloat, invited JP Morgan to assist it in securing emergency financing.

 

The suit alleges that JP Morgan then used the intimate knowledge it learned about Lehman's books to demand as much as $8.6 billion in cash from its rival in the last four business days before it filed for bankruptcy.

[southsider2k5]

This article seems to fit into that discussion we had a few months ago about how when LEH and AIG went down, one possible reason why was that their creditors were deliberately writing down the value of their securities too far to extract higher payments from those companies.

 

Hooray for SOX!

[Balta1701]

Hooray for SOX!

Let's hope they can win 2 series in a row against the Rays.

[Balta1701]

Hooray for SOX!

Anyway, more seriously...if SOX was the problem, and JPMorgan was just trying to live up to its SOX requirements, then wouldn't this lawsuit be groundless?