The Future of Forex

My Opinion Response to Yahoo's article  " Forex Outlook for June".   Generally, I think Forex is expected to be very volatile this year, because of drop of gold prices and slowdown of economy in China.   Economic slowdown in China is mostly due to substantial decline in exports in response to recession in Europe and US, inflated property prices and generally inflation in China is on a rise. Also, China unsuccessfully tried … [Read more...]

Job Report Exceed’s But Job Chart Is The Scariest

 Last week's job report showed that the  U.S. economy added 175,000 jobs in May.  And the unemployment rate increased up to 7.6 per cent. The report exceeded expectations.   Bill McBride of Calculated Risk wrote that “This shows the depth of the recent employment recession — worse than any other post-war recession — and the relatively slow recovery due to the lingering effects of the housing bust and financial crisis,” I … [Read more...]

Foreign Currency Losses Were Telegraphed in Advance

Forex graphic #1

In a recent Wall Street Journal article by Alex Frangos, ““Top Banks Missed Call Y100 Level Soon,” it was reported that not a single analyst from 15 financial institutions expected the Japanese Yen to fall to 100 per US Dollar.  Across the board, investors in traditional safe haven assets such as gold and foreign currency were caught unprepared by the impact of Quantitative Easing III and other money creating efforts by the world's central … [Read more...]

Jamie Dimon: Head or Tails

J.P. Morgan boss--Jamie Dimon

    Legends often die a slow, painful death on Wall Street with an inevitable collapse at the end.  That was the story for Lehman Brothers, Bear Stearns, and a host of others.  It is also a pattern that seems to be repeating itself with Jamie Dimon, the venerable Chairman and Chief Executive Officer of JP Morgan, considered by many to be the standard bearer for blue chip banking firms. Like so many others, however, JP Morgan … [Read more...]

U.S. Treasury Department Will Suspend Sales

USDeptOfTreasurySeal-2003Bill

By Anna Timone   “ The Treasury Department on Friday will suspend sales of state and local government Treasury securities until further notice, the first action to avoid hitting the U.S. debt ceiling. The debt ceiling is expected to be reached on May 18, but the Treasury had been expected to take steps like this one in order to keep paying bills. Treasury Secretary Jacob Lew said last week that the U.S. will be able to avoid the debt … [Read more...]

Your husband commits insider trading — Now what?

NYSE trading floor

  There could be a bull market for divorce lawyers from marriages falling apart due to financial fraud or insider trading by a husband or wife.  Most of the time the husband is the one committing fraud and the wife is either a victim or left with damages or even both. New York is now a no-fault state for divorce. The wife of a husband who has committed insider trading can move forward to end the marriage based on no fault … [Read more...]

The Bitcoin Bubble is Next!

Bitcoin

  For those who missed out on the housing bubble and the high tech bubble of the last decade, the Bitcoin bubble is forming. Now valued at over $200 a unit as opposed to around $30 in February, a Bitcoin is a medium of exchange created on the Internet to compensate those for the electricity used in solving complex math problems. It has now ascended to a level to where it is reported to be used for money laundering and other financial … [Read more...]

Can Cyprus Remain a Foreign Exchange Haven?

Cyprus bank

In much the same way that profits earned abroad by American companies are not kept physically offshore, foreign exchange, brokers in Cyprus have been alerting clients that their accounts are not under threat from any confiscatory measures like the savings accounts for the citizens of the island nation. Due to a favorable regulatory regime, Cyprus is one of the top five foreign exchange trading hubs for brokers.  While the gross domestic … [Read more...]

Currency Survival In The European Debt Crisis

European markets

What has been perhaps the most significant factor in the European Debt Crisis for the currencies markets has not been the actual event itself, but the reaction of global central bankers. The rounds of quantitative easing that have been used to combat falling asset prices have engendered profound consequences not previously considered. Certainly among those roiling the markets has been the detachment of gold from its traditional link to fiat … [Read more...]