Originally posted by Rockpuck
Especially if your into Forex markets.. Cash is by all means tradeable .. falls, rises.. can generate quite a good load of money.. Cash is traded by volume and level far more then all stocks combined..

*shudder*
I tried playing the forex once. Didn't go so good. I just stick to the sidelines now.

Hi There,

If I may I would like to present something of a naive assumption. I would expect Monday to see gains in the markets, nothing colossal, just a bit of shoring up, but I do feel that come Tuesday or Wednesday, we will see the markets slipping again...

I apologise for quoting myself, but I expected the markets to slip and slide again, as I believe many of us thought they would. I gave the wrong reason for why they would do so, but with fears of the recession, that was another bone for which to contender with. It is these fears of recession that will really do the damage, because they are fears of reality.

Here in the UK we're expecting some real damage done to the employment figures (currently at 1.79 million unemployed, and inflation at its highest for many years), with a potential of up to a million losing their jobs over the coming months into 2009. Sometime over the period of this recession, I would expect to see regional conflicts breaking out, as countries begin getting desperate regarding their economies. I believe Obama will make it to president, but will have a nightmare first term, and if he makes it throught to the end of it...well, I'll be surprised. Just speculation arising from bad empathy.

Best wishes

Originally posted by RetinoidReceptor

Originally posted by Rockpuck

Money is equity.. in another form .. currency to currency.

Money (cash) is an asset. An asset that allows you to diversify assets (through purchasing power) which in turn increases equity (what is owned/benefited by the "owners" or people).

Assets=Liabilities+Equity

[edit on 15-10-2008 by RetinoidReceptor]

Money is a marker of agreed value(place holder) within a certain reference point(market)

Equity is potential money(value) that has not been realized(spent)

The equity value is only potential(speculative) until it is realized into the market.

Equity (as money) is only an asset when it is spent on real goods and services

The true value of the goods and service does not change only the perceived market value(price) as exchanged for money in a given market(economy)

Equity can be traded as an instrument of value, however the trade value can only be speculative until the equity is realized.

When the derivative option(what the original equity is based upon:mortgage, property value, ect.) is unknown due to multiple speculation trades, the buyer assumes all the risk of the market realization of the equity.

Eventually a potential equity buyer will need to determine the realized value of a potential buying option, this is a market call.

Market call is the point where equity assets can become liabilities,if the realized value is less than the speculated value(audit).
When this happens multiple times due to multiple trades of the same equity,it is known as a market collapse.

The market corrects itself to the realized value(current) of its equity speculation(potential).

That specific collapsed equity market can no longer function unless there is more speculation on the existing market value, That is where the bailout fits into the equation.

The bailout is designed to inflate the market speculation(increase the price without effecting value). This inflation creates (debt/credit) margins to allow function (trades) in the market

The bailout functions only to perpetuate the market and allow the market makers(large investment firms) to generate capital through transaction fees and new investor speculation.

However the same collapse will result whenever the market is called to realize true value.

All money is debt, value is perception.

Only goods and services are real