wayneL
VIVA LA LIBERTAD, CARAJO!
- Joined
- 9 July 2004
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Financial reporting in a nutshell.LOLIf you cant explain or understand something.
Just invent something that fits!
If you cant explain or understand something.
Just invent something that fits!
What i find interesting is that many are expecting a large correction sometime later this year. Some have even gone as far as selling their holdings and shifting the money into savings accounts ready to pounce when the market corrects. What i don't understand is that if this was going to be the case, why are the so called professional investors and private equity holders launching takeovers and making other acquisitions at this stage of the market?
I believe that the simple fact that there are so many aquisitions taking place is evidence that we are in a bull market and it is not going bear for a long time yet. Had such confidence not existed many would wait for a longer term correction or marker collapse before launching any takeover bid.
Dollar Falls to Record Against Euro on Housing Slowdown Concern
By Bo Nielsen and Ye Xie
Enlarge Image
The portrait of Benjamin Franklin on a US 100 dollar bill
July 10 (Bloomberg) -- The dollar fell to a record against the euro and dropped the most since March versus the yen on speculation the housing market's slump will worsen.
The U.S. currency also sank against the Swiss franc, British pound and Danish krone after Standard & Poor's warned it may cut ratings on $12 billion of bonds backed by subprime mortgages, diminishing the appeal of dollar-denominated assets. Futures contracts show traders forecast the Federal Reserve will keep borrowing costs on hold through year-end.
``We still have some questions about whether growth is returning to the U.S. market,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Global Markets Inc. in New York. ``The U.S. was the anchor for global growth. We're now seeing the dollar losing ground against an awful lot of currencies.''
The dollar dropped to $1.3718 per euro at 2:32 p.m. in New York, from $1.3626 yesterday. The U.S. currency broke the April 27 record of $1.3681 and traded as low as $1.3740, the weakest since Europe's common currency started trading in 1999. The dollar fell 1 percent to 122.12 yen, the biggest tumble since March 13, as traders exited riskier assets.
S&P is preparing to lower the ratings on 2.1 percent of the $565.3 billion of subprime bonds issued in late 2005 through 2006 because the housing slump is worse than the company anticipated, it said in a statement today.
`Growth Situation'
The euro got a boost from comments by Luxembourg Prime and Finance Minister Jean-Claude Juncker, who said at a meeting in Brussels today that the region's ``growth situation is excellent.''
The Fed held benchmark borrowing costs unchanged at 5.25 percent on June 28 for an eighth straight meeting. The European Central Bank may lift its key refinancing rate from a six-year high of 4 percent, according to interest-rate futures.
The dollar index, a gauge of its value against six other currencies, earlier fell to a 2 1/2-year low of 80.822. It traded at 80.908, from 81.433 yesterday.
The dollar declined after Fed Chairman Ben S. Bernanke said inflation expectations ``remain imperfectly anchored'' in part because the public doesn't know the central bank's goal for prices. He spoke at the National Bureau of Economic Research in Cambridge, Massachusetts.
`Appeal Will Deteriorate'
``There are two main factors at the heart of the dollar's weakness -- its yield appeal will deteriorate against its major counterparts and there are lingering concerns about the possible contagion of the subprime crisis into the broader economy,'' said Omer Esiner, an analyst at currency-trading company Ruesch International Inc. in Washington. ``It's reflective of broader negative sentiment against the dollar.
The yield advantage of a benchmark 10-year U.S. Treasury note over a comparable-maturity German bund was 46 basis points, close to the lowest in almost three years. It has dropped 19 basis points since April. A basis point is 0.01 percentage point........................
The US market is having a bout of cognitive dissonance at the moment.Will be very interested to see how the US goes tonight. A couple of record days thurs/fri, and with the asian markets hovering around their records today.....
Im not so sure how the whole sub-prime rout will show its ugly head either?
Will the investment banks reveal the extent of damage in their yearly reports? Either way, I think tonight may keep the bulls chugging along nicely just holding back the nervous whatifs, or if it cant keep the record run going and it loses 1-2%, I think our market tomorrow will head for a nice dive.
What does everyone else think?
Thoughts on the housing crisis? Subprime woes? Record earnings? Both here and the US....
Just a newbie trying to make sense of this wonderfully exciting and challenging economic times. Help to educate me.
Main Entry: cognitive dissonanceIm sorry to be such a newbie...
are you able to explain/describe what cognitive dissonance is in this context?
SM?
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