Forex Trades....Discussions...frustrations...annhilation s.. ,

[Sunny1]

As FX has increased in popularity .....and still there is no ...Thread ....to chat on this topic.......while there are many threads for nifty chat and discussions.

This thread I am particularly opening to chat about FX only.....
And There by keeping the other FX related threads clean ( like Trading The bars).....Those threads are for only certain specific topic...


Ok....First ...thing I am asking for....

What is Euro crisis....?
Tried googling.....but no avail....could not understand properly

Hope someone would explain.....



Had...Done all scalp trades Today....ended in Red....

 

[TraderDude]

As FX has increased in popularity .....and still there is no ...Thread ....to chat on this topic.......while there are many threads for nifty chat and discussions.

This thread I am particularly opening to chat about FX only.....
And There by keeping the other FX related threads clean ( like Trading The bars).....Those threads are for only certain specific topic...


Ok....First ...thing I am asking for....

What is Euro crisis....?
Tried googling.....but no avail....could not understand properly

Hope someone would explain.....



Had...Done all scalp trades Today....ended in Red....

What is Euro crisis?

Quite simple actually, the poorer euro countries like greece , ireland, spain, portugal took loan from the richer euro countries like france,germany and now they can't pay back. So who is going to bail out the poorer euro countries?. difficult to answer. if they default, their credit ratings go down , which means they cannot borrow or no one will invest in their bonds.
and if they default, france and germany are going to lose lots of money, so they have to take loans from some other country and you are stuck in a loop,and other countries can't loan out because they would end up in the same situation. Look pretty worse.

But the Banksters are there, flying like eagles to feed off the dying euro. they will force the govt's to print more and more money by making govt's issue bonds, because govt's need money at the moment to keep the economy going and hence the euro govt's will go into perpetual debts.

And you will be thinking why all this debt, because the bankster want more control over euro. Hence they create crisis when they want more control. It's always been like since hundreds of years, and people are too deep in the sleep to wake up and realize this. Very sad actually.

And folks remember...debt = money and that is why your money is worth less then what it was worth a year ago..

The euro is at the lowest in years now. Dollar looking strong now. I would buy lots of euro now and keep them for few months.

just watch euro ,will rise in the coming months..

Also a note on symbol of Euro..

Inspiration for the € symbol itself came from the Greek epsilon (Є) – a reference to the cradle of European civilisation – and the first letter of the word Europe, crossed by two parallel lines to ‘certify’ the stability of the euro.
—European Commission

Oh my , the irony...

 

[Sunny1]

Thanks...Dude......

So thats it....they call it a problem.....by creating themselves ....

Lets see.... what happens to Euro....will be interesting to watch trading point of view...

 

[Sunny1]

http://www.myfxbook.com/members/Sunny1/fxcm-28333/211414

I think last few breaths left for this account

 

[gd.shepherd]

As FX has increased in popularity .....and still there is no ...Thread ....to chat on this topic.......while there are many threads for nifty chat and discussions.

This thread I am particularly opening to chat about FX only.....
And There by keeping the other FX related threads clean ( like Trading The bars).....Those threads are for only certain specific topic...


Ok....First ...thing I am asking for....

What is Euro crisis....?
Tried googling.....but no avail....could not understand properly

Hope someone would explain.....



Had...Done all scalp trades Today....ended in Red....

Eurozone crisis is bigger and is ongoing since 2 years. I think it will end disastrously for the peripheral countries.

Let me explain what i understood

When countries joined the eurozone, the markets were happy and the weaker countries got the benefit of doubt as they were in the company of stronger countries like France and Germany. hence the borrowing cost of peripheral countries also fell to a good extent and converged towards the rates of Germany and France. As the 2008 financial crisis hit lot of banks in the Eurozone were exposed to the toxic assets from US mortgage market and their balance sheet was bad. Governments all over the world had to inject huge amounts of liquidity to unfreeze the credit market and to rescue banks so that they could start lending again.

This led to countries going more into debt and banks and other investors holding the sovereign bonds of countries. The problem first manifested in Greece where the deficit was covered using derivatives with the help of Goldman Sachs. Once this was discovered, markets lost confidence in Greece and borrowing costs went up. Ireland, Spain were already in trouble as their housing bubbles had burst leading to enormous stresses in the banking sector. So like a wildfire this debt crisis spread from the peripheral countries to the core. Now it is standing short of affecting Germany and France. Adding fuel to the fire are the rating agencies.

The rating agencies lost much credibility during the financial crisis and were keen to keep up their good name and hence went about creating downgrades where required. However this added to the panic and borrowing costs of the members in the eurozone went up.

The trouble with USA in the debt crisis is that AIG has underwritten a lot of CDS deals and would have to cover it if the members for whom it has written the CDS defaults. This will affect the US banking sector and the whole world leading to a credit freeze again.

Commercially the problem for the US, if Euro were to go down, it would lose a big trading partner and would lead to stress in its exports as the dollar would be a more stronger currency.

On the other hand, we have aggressive hedge funds who have taken wild bets on the collapse of Euro. Some like MF global have collapsed due to their bad bets.

The whole crisis is one big mess and is a continuation of the Great recession.

Hope this helps

Shepherd

 

[Sunny1]

Wow ...thats very good explaination.


Thanks gd.shepherd. It is indeed a very helpful.

This is the reason I am against Loans......no body in the world should allow unnecessary loans... it only creates a mess in the end.

what happens is this....when business is growing fast...everybody want to take full benefit....and best way to leverage and expand is loans .....
when Business is at peak ....everybody is busy taking loans to leverage ..
peak is over downward starts....and those who have taken loans at peak....are stuck
And mess up start.....

 

[gd.shepherd]

Wow ...thats very good explaination.


Thanks gd.shepherd. It is indeed a very helpful.

This is the reason I am against Loans......no body in the world should allow unnecessary loans... it only creates a mess in the end.

what happens is this....when business is growing fast...everybody want to take full benefit....and best way to leverage and expand is loans .....
when Business is at peak ....everybody is busy taking loans to leverage ..
peak is over downward starts....and those who have taken loans at peak....are stuck
And mess up start.....

Thanks for the post. Even I am against debt.

The problem is with the economic system in place in the whole world. The whole world runs on debt. Today's banking system creates money out of thin air and loans it out and collects interest on that. So theoretically even if all the debt was created by banking system, new loans need to be created to pay interest on a regular basis and there are bound to be defaults.

I am so distressed by this fundamentally flawed system, I sometimes wonder how long will this continue. I do not have sufficient money, otherwise I would be really short the banking stocks.

Inflation is tax (in addition to income tax) that governments around the world impose for maintaining this fiat system of money. In the USA, now there is a clamor for returning to gold standard.

I was watching a video in youtube where it was mentioned that a second wave of mortgage tsunami's are going to hit the US banking sector in 2012 and it is estimated 50-60% would default. This sort of information makes me wonder the futility of this fiat money system.

The boom and bust can also be artificially controlled by banks withdrawing lending to the people thus creating a depression.

I sincerely hope I am wrong and this does not happen.

Shepherd

 

[TraderDude]

The main issue in US subprime mortages was , the greedy bankers allowed to give loans to people with bad credit. Why? because the mortages were sold as investment to investors and they wanted more of it.

prime mortages which were sold had no issues , as the home owner would pay on time and their investors would get the returns on time.

It was the people with bad credit and greedy bankers that brought down the whole economic mess worldwide.

 

[Sunny1]

Ah....EUR/USD ....finally moved.....but in opp. direction then expected....


I was long on friday closed in 14 pip loss....
Was long today also ....closed at 42 pip loss....
was frustrating....
and finally went short ......closing in 113 pip profit... sell at 3030.... cover at 2917...

If I had not been in hurry...would have saved 57 pip ......plus would have extracted....30-40 pip....more

 

[SavantGarde]

Hi TD,

It is extremely well explained in a documentary called 'Inside Job'

SG

The main issue in US subprime mortages was , the greedy bankers allowed to give loans to people with bad credit. Why? because the mortages were sold as investment to investors and they wanted more of it.

prime mortages which were sold had no issues , as the home owner would pay on time and their investors would get the returns on time.

It was the people with bad credit and greedy bankers that brought down the whole economic mess worldwide.