The House of Representatives voted 228-205 against the financial rescue package - an unexpected defeat after the assurances from congressional leadership over the weekend. Read More...

Tags: Rescue Package

Hello Traders,

Listen to the Bloomberg interview with FDIC Chairman Sheila Bair... Listen to the undertones and central themes of her well articulated and non-deceptive commentary. My earlier comments on FDIC support max of approximately 78B is confirmed in her comments. FDIC used 15% to rescue IndyMac and the question remains about what will happen with any significant number or size of future bank failures and its impact on personal net worth. This will further compound the tightening of purchasing power of US residents, above the declined perceived value of their real estate holdings, equities portfolios and contraints on personal spending as a result of rising inflation. Read More...

Tags: Videos

Hello Traders;

Here is an excellent article from Joe Trevisani, Chief Market Analyst at FXSOL to give you a brief history of the current financial crisis and environment.

I highly recommend you read this article. I'm heading overseas today and hope to be back on later this week.

Chris

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Hello Traders;

Attached is another Bloomberg interview with Nouriel Roubini.

You may ask.... What do his comments mean to me as a forex trader?
The interview was done prior to the Treasury bailout and events listed in the most recent blog, which has caused tremendous volatility in all financial markets. I am watching for the impact of the factors he has listed to continue to weigh on the overall economy and will be reflected in market movements across the board. If the hightened emotions from the bailout begin to fade, watch for a continuation of JPY and USD rally in the months ahead.

Watch the Interview
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Tags: Videos

Hi Traders, Here is a Bloomberg interview with Bill Fleckenstein that i recommend. A frank view of the financial environment, at present.

Watch the Interview
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Tags: Videos

With interbank lending suffering, several central banks coordinated an emergency injection of dollar liquidity. The Fed, in conjunction with the ECB, BoJ, BoE, BoC and SNB, announced an expansion of $180bn in swap lines and pledged to work together to address ongoing pressures in global financial markets. Initially, overnight USD LIBOR went to 3.84% from 5.03% following the announcement and Fed Funds have moved closer to the 2% target. Risk appetite has also returned for now, and equities rallied on the announcement. The liquidity injection, though, does not alleviate existing concerns in the US financial sector. The 3m TED spread (TED spread is the difference in yields between inter-bank and U.S. Government loans.) continued to widen and several institutions still remain under pressure. As problems in the financial space prey on, I anticipate the EUR/USD to be range bound 1.4200 – 1.4700 in the near term. Keeping in mind the ADR's are double the average, meaning the foresaid range is small on a relative basis. Read More...

Tags: Intervention

Hi Traders

Here is a link to a Jim Rogers interview with Bloomberg that I recommend.

Watch the Interview

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Tags: Videos

Australian data released yesterday showed some signs of stabilization in the economy. Monthly retail trade jumped 1.4% in July (UBSe. 0.8%m/m, cons. 0.5% m/m) and the NAB business conditions in August rose slightly to -3 from -5. Total housing lending in July also rose by0.6%, after 5 consecutive monthly declines totaling more than 23%. Read More...

Tags: AUD

Nobel Prize - winning economists and "genius'" Myron Scholes and Robert C. Merton were founders of Long Term Capital Management, which in 1998 lost $4 billion. That helped foster a global financial crisis and triggered both a Wall Street-led bailout and congressional hearings on the dangers of hedge funds, the freewheeling pools for wealthy investors and institutions that often trade heavily and rely on borrowed money to achieve jacked up returns. LTCM had leveraged a notional amount of $2.5B into excess of $100B of investment. NOW THAT'S GENIUS!
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Tags: Risk Appetite

Cable taking a Sterling Pounding on slow growth and call for substantial cuts

At the peril of many day traders, thin liquidity over the holiday weekend has further compounded the extensive August moves. Unless your method of trading is suitable to current conditions, take caution until efficiency and price stability take effect.
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Tags: GBP