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Originally posted by redhatty
Bad bank - stock plummets - this is natural.
Originally posted by burdman30ott6
reply to post by clay2 baraka
That's for the day after election day, though. Totally different animal.
Originally posted by David9176
I've been hearing on the news that it is rumored that they may do what was originally planned with the first bailout...setting up a central bank to buy all the bad debt. This is reportedly coming from Obama's Administration. I have no links on this though. Maybe someone else had heard this also.
If this is true...is this yet another package or part of the new one? How much are they going to keep spending?
Each day it gets more depressing. My woman tells me to just let it happen and that i can't do anything about it anyway. She's right. I can't. Looks like i'll just have to sit and take it....but i'm still going to bitch like there is no tomorrow.
[edit on 20-1-2009 by David9176]
LONDON, Jan 20 (Reuters) - Gold rose more than 3 percent to an 11-day high of $860.40 an ounce on Tuesday amid market talk of a large order, with firm investment demand for gold as a haven from risk fueling buying of the precious metal. Spot gold was quoted at $854.60/856.60 an ounce at 1525 GMT, up from $834.55 late on Monday. Earlier it touched a low of $822.90, down more than 1 percent. U.S. gold futures for February delivery GCG9 on the COMEX division of the New York Mercantile Exchange rose $17.20 to $857.10 an ounce. Standard Chartered analyst Daniel Smith said strong investor flows into products such as exchange-traded funds, as investors sought more secure assets, were offsetting weaker jewelery demand. "People are slowly building long positions in gold and commodities more generally," he said. Gold shrugged off early weakness linked to a strengthening U.S. dollar and weaker oil prices. The dollar rose to a six-week high against the euro as traders worried about the outlook for the euro zone economy, after the European Commission issued a grim forecast for 2009 and Standard and Poor's cut Spain's debt ratings. [ID:nN20402332]
Gold tends to move in line with crude, as it is often used as a hedge against oil-led inflation. Moves in the oil price are also an indicator of interest in commodities as an asset class.
Overall, fears over the outlook for the global economy and the financial system are boosting interest in products like exchange-traded funds -- which issue securities backed by actual stocks of gold. These are seen as less risky than paper assets.
“Obama’s economic stimulus plan will drive the market,” said Tsutomu Komiya, an investor in Tokyo at Daiwa Asset Management Co., a unit of Japan’s second-largest brokerage, which has the equivalent of $108.2 billion in assets. “It’s time to stay away from Treasuries.” The yield on the 10-year note, used to set corporate and government borrowing costs, rose two basis points to 2.40 percent as of 10:22 a.m. in Tokyo, according to BGCantor Market Data. The price of the 3.75 percent security maturing in November 2018 fell 7/32, or $2.19 per $1,000 face amount, to 111 3/4. A basis point is 0.01 percentage point. Longer-term Treasuries dropped for a second day yesterday on speculation Obama’s administration will join governments around the world in selling record amounts of debt to battle the global recession.
By Wes Goodman Jan. 19 (Bloomberg) -- A rally that sent U.S. Treasuries to their best year since 1995 is coming to an end, South Korea’s National Pension Service, the country’s biggest investor, said. U.S. government efforts to combat the recession will prompt the Federal Reserve to raise interest rates this year, said Kim Heeseok, who oversees $160 billion as head of global investments for the service in Seoul. The decline would snap a surge that sent the securities up 14 percent last year, according to Merrill Lynch & Co.’s U.S. Treasury Master index, as investors sought the relative safety of debt. “It’s time to sell U.S. Treasuries,” said Kim, who took over as head of investments at the start of the year. “The stimulus plan may cause inflation. The U.S. will raise the benchmark interest rate.” U.S. government securities headed for their first monthly loss since October after President-elect Barack Obama, who takes office tomorrow, said he will do “whatever it takes” to battle what he called the biggest economic crisis since the Great Depression. Obama is planning an $850 billion stimulus plan, on top of $700 billion approved by President George W. Bush.
Jan. 20 (Bloomberg) -- At a time when interest-rates are sinking toward zero around the world, the biggest currency traders are recommending countries that have the largest trade surpluses, led by Japan, Norway and Switzerland. BNP Paribas SA, the best currency forecaster in a 2007 Bloomberg survey, says the yen will strengthen about 14 percent against the dollar by June. Goldman Sachs Group Inc. made Norway’s krone one of its top 2009 picks, with possible gains of 17 percent versus the dollar. Bank of America Corp., the largest U.S. lender by assets, says the Swiss franc will advance against every major currency. The global economic crisis that forced central banks from the U.S. to New Zealand to cut interest rates last year also reduced earnings from so-called carry trades by about half, according to data compiled by Bloomberg. Currencies of countries with trade surpluses are perceived as safer because governments don’t have to brave credit markets in a year when sovereign bond sales are likely to exceed $3 trillion.
Originally posted by vonvitt
reply to post by St Udio
I'm sorry but that is about the most unsound investment advice I have ever heard.
I wouldn't care if my 20% loss came in the form of a stock losing $.80 or $8.00...IT'S STILL A LOSS OF 20%!!!!
I understand where you are coming from but you are wrong. It all depends what price you invested at....
[edit on 20-1-2009 by vonvitt]