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To: Golddigger3

The difference is that Germany doesn’t have a print-happy central bank promising (in so many words) to print money to buy bonds if need be like Bernanke is doing. So Germany’s bond market is actually a competitive marketplace instead of a rigged, central bank-created, bubble marketplace like we have.


7 posted on 01/11/2009 12:08:01 PM PST by MittFan08
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To: MittFan08
The German bond action this week is much ado about nothing. Bunds (their equivalent to 10-year Notes) were almost unch on the week. Yawn.

Until the public discovers how much worse off (relatively) big EuroZone banks are than are US banks, Bunds, BOBLs, and Schatzes don't really have a problem other than that Eurocurrency is going to take a hit this year.

10 posted on 01/11/2009 12:20:07 PM PST by SAJ
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To: MittFan08; Parmy

Another article from same issue of WSJ suggesting that the dollar may collapse:

This article has a misleading healine since the dollar fell against the yen and the experts they quote say the dollars is weak and that the advance agaist other currencies is not to be trusted:

Dollar Advances Against Euro

The dollar stengthened against the euro after the U.S. December employment report wasn’t as bad as some had feared.

The dollar broke through a series of session highs against the euro as buying momentum built during the session.

The greenback briefly erased losses versus the yen before resuming its downward move as U.S. stocks declined.

“It is a short-term relief for the dollar,” said Sebastien Galy, senior currency strategist at BP Paribas Securities SA in New York. “People have positioned for a worse number. But it didn’t change the fact of a deteriorating labor market.”

The selling of the euor against the dollar also pushed the common currency down against the yen and the pound.

In late Friday afternoon trading in New York, the euor was at $1.3431, compared with $1.3726 late Thursday, and the dollar moved to 90.24 yen from 91.17 yen. . . .

Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto, said the dollar’s rally Friday was more of a “relif trade” than an outright vote of confidence.

Michael Woolfolk, senior currency strategist at the Bank of New York Mellon Corp. in New York, said that deteriorating economic dundamenals in the U.S. and overseas added to risk aversion, thereby benefiting the yen and the dollar as haven currencies.

Strength isn’t necessaryily a good thing for the yen or its regional counterparts. Asia’s central banks are currently accepting a decline in the value of their currencies in an effort to support exports, the latest foreign-exchange reserves data suggest.


12 posted on 01/11/2009 12:20:41 PM PST by Golddigger3
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