cheers paul, it gets awful quiet in here. what's been happening?
As I see it, Libor is close to ground zero for the whole financial system. The root for the fruit as they say.
Nothing I read about the US budget deficits in conjunction with the 3 lowest Libor rates being where they are makes me warm and fuzzy. I miss that feeling - ignorance was bliss(;o)
We need another bubble. Any thoughts?
As for currencies, they will pick apart all and any weekness in the EUR, China and AUD - that's all they have left. Emerging markets have done well to weather the flood of foreign investment. What Brazil did was magnificent self protection (an investment tax).
The repatriation into Yen took 3 months after Kobe, so we are yet to really see a Yen flow of funds with any earnest. You don't move 1000pips in 3 days (UJ and AJ) in fundamentally sound markets.
US borrowing at US libor will sell down the USD buying anything offshore USA so that will counter any move they have in lifting the USD. Only good for US equities as I see it, so a weaker USD is virtually a given. This helps their pathetic balance of trade anyways.
Just trying to pick the threads amongst the sea of ignorant commentators. No-one seems interested in the Libor issue - odd seeing how fundamental it appears to a great many things.
The AUD lending rates are surreal by comparison. Not sure many realise the harmful effects this has for local AUS investors when offshore investors have such cheap source of finance. The RBA would not enjoy the position they have presently.
Any shock to the AUD might be due to foreigners fleeing the country maybe. UJ and AJ was almost understandable for a day or so.
A very good time to swing trade using basic patterns I think. This volatility might be around for a while.
