My theory is that the increase in the US national debt from 5 trillion to 10 trillion in 8 years has put too much pressure on the international financial system. Foreign investors have slowly since around 2003, stopped recycling all their dollars into the US economy. This has caused the current collapse in credit, since the federal reserve has had to do all the heavy lifting, trying to prop this thing up. Now, the 800 billion is sort of a margin call from the countries that currently finance the US budget. That's why the dollar has been collapsing the last few years, and why OPEC now demands a 100 per barrel floor to crude.
M
morganist
you guys seem to have a lot of knowledge on the subject are you graduates or do you work in finance.
Hilarious thread!
GO LONG TIN FOIL!
GO LONG TIN FOIL!
LOL. Obviously not trading. OK, back to trading.
It's quite obvious to even a ten year old that these problems did not just surface overnight. These types of banking fiascos surface over and over again over time.
For instance, Mccain is no stranger to housing crises and banking scandals; I guess no one is old enough to recall the S&L crisis and the Keating 5. Guess who was one of the vigorous defenders of C. Keating (who was indicted for fraud btw), telling regulators to back off and stop investigating the events surrounding the honorable Mr. Keating? Much of this is quite hilarious if people don't see the irony.
I guess the more important question to ask, is were there any outright attempts to exasperate the unfolding problem, and to assist in ways of benefiting off of it in a quick and dirty manner. Well, it does bring to mind
some questions about why the uptick rule and trading curbs were kicked to the curb RIGHT before the panic drop, because their brilliant researchers told them they had absolutely no effect on smoothing volatility.
I try to stay away from politics, but the current events are pretty fubar and taxing.
For instance, Mccain is no stranger to housing crises and banking scandals; I guess no one is old enough to recall the S&L crisis and the Keating 5. Guess who was one of the vigorous defenders of C. Keating (who was indicted for fraud btw), telling regulators to back off and stop investigating the events surrounding the honorable Mr. Keating? Much of this is quite hilarious if people don't see the irony.
I guess the more important question to ask, is were there any outright attempts to exasperate the unfolding problem, and to assist in ways of benefiting off of it in a quick and dirty manner. Well, it does bring to mind
some questions about why the uptick rule and trading curbs were kicked to the curb RIGHT before the panic drop, because their brilliant researchers told them they had absolutely no effect on smoothing volatility.
I try to stay away from politics, but the current events are pretty fubar and taxing.
M
morganist
ok fine you are obviously traders, which makes sense being a trading website. but i am not a trader i am a macro economist so i thought that some of you might be similar to me or graduates with an interest in trading.
by the way how are you going to control the economy through interest rate if debt fails.
by the way how are you going to control the economy through interest rate if debt fails.
I think a good chunk of people here trade. From what I gather many (if not most) daytrade futures. Proof I trade