Posted on 05/14/2010 11:07:06 AM PDT by dennisw
Freefall: EURUSD 1.2388 And Plunging, Market Liquidity Disappears Again, Traders Brace For Another Flash Crash Submitted by Tyler Durden on 05/14/2010 10:12 -0500
* European Central Bank * International Monetary Fund
Full profit taking in everything. Now even gold is plunging, but it is likely an LBMA "intervention." EURUSD just broke through 1.23 and has no further realistic supports for a long time. The money has no option but to go into gold or money markets. For now it is not going into gold, which means it is a relatively good buying opportunity. Liquidity in stocks is now gone as volume picks up. Two of the desk traders we have spoken to are all wearing fireman's hats, bracing for Flash Crash part 2. Look for much more action out of the ECB/FED/IMF/EU/X-Men/Ghostbusters before Asia opens this Sunday. In the meantime, everyone must sure be grateful that the SEC is contemplating instituting new and improved circuitbreakers some time in 2039.
Well, there goes another 80 billion plus of taxpayer $. Wonder how much Monday will cost?
Right, maybe the Eurotrash will try a $2Trillion Euro bailout. I’m sure that will work.
Has Obama told us that this is A Good Thing yet?
Any European Freepers wish to get out of Euro assets and into bargain priced Florida real estate send me a Freepmail and I will help out. I have some people available at MoneyCorp who can get the money xfered for as little as 0.5% exchange fee...
Interesting. USD is appreciating today against both the Euro and the CDN. CDN hasn’t managed to push through to 80 cents record high against the Euro.
the reason for that is because the loonie is heavily indexed to commodities. The belief is that commodities are gonna take a hit because of weakness in Europe. Ergo, CAD takes a hit.
In fact, the dollar will likely appreciate relative to other currencies AND commodities in the coming year or three. We are in for a very big decline on a world-wide basis. Think Japan 20 years ago and that is what will happen here.
For more info, read Harry S. Dent’s The Great Depression Ahead.
It’s gonna be a wild ride, folks...
Well good for me. I converted all my CDN to USD when it hit over par.
I’ll do the reverse if/when the CDN drops to about 70 cents on the dollar in about the year. That’s been a pretty reliable market indicator for the last couple of years.
be cautious about that as we are right now at the peak of the 30 year commodity cycle. It will be a long trough ahead for commodities and along with them possible the loonie...
How bad is the European economy that the Euro is dropping against the dollar, even as the dollar is continually being depreciated by the National Debt?
There was a kidnapping story today of a German Bankers wife ... the kidnapper requested Euro’s with the german flag imprint ... is he thinking that they’re safer or better backed?
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