Monday 22 August 2011

Traders Speculating (Praying) That Bernanke Will Announce New Stimulus Scheme This Week In Jackson Hole

Traders Speculating (Praying) That Bernanke Will Announce New Stimulus Scheme This Week In Jackson Hole:

bernanke

It has been a year since Ben Bernanke threw his last big bone to Wall Street: The announcement at last year's Jackson Hole schmooze-fest that the Fed had a number of options at its disposal to stimulate the economy.


(Translation: We're launching QE2).


Bernanke's speaking at this year's Jackson Hole this Friday. Wall Street is speculating--or at least praying--that the Fed Chairman will say something similar this year.


This seems a reasonable bet. Bernanke tends to freak out whenever markets tank, and the last month of ~15% declines has wiped $8 trillion off the value of global stock markets.


On the other hand, QE2 was a bust, and Bernanke has already recently promised that the Fed will keep short-term interest rates at zero until 2013. And inflation has been ticking up. So maybe the Fed chairman will hold firm.


More at MarketWatch >


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The Soaring Swiss Franc Is Leaving Expat Hedge Fund Staff With No Cash

The Soaring Swiss Franc Is Leaving Expat Hedge Fund Staff With No Cash:

Zurich, Switzerland

British hedge funds that relocated to Switzerland in an attempt to avoid rising UK taxes are now being hit by the soaring Swiss Franc, reports The Telegraph.


The majority of the hedge funds involved -- such as Brevan Howard and Amplitude Capital -- pay their staff in US dollars. Now, with the seemingly gravity defying rise of the Swiss Franc, their spending power is being greatly reduced.


The hedge funds had moved in an attempt to avoid rising taxes in the UK, such as the 50% income tax, reports The Telegraph.


For many living in Switzerland, it's now become cheaper to drive to Germany than to shop in Switzerland itself, reports Der Spiegel.


The drive from Zurich to German border town Lorrach takes around 1 hour and 13 minutes, and afterwards shoppers can claim the sales tax back.


In fact, many Swiss seem pretty happy with their cheap shopping, but for hedge funders earning a foreign currency, Switzerland doesn't seem so attractive a place to live anymore.


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THE BREAKDOWN: Our economy, one step at a time

THE BREAKDOWN: Our economy, one step at a time: In the wake of a turbulent month for markets and economies around the world, Kai Ryssdal hosts a special one-hour Marketplace audio broadcast examining where the U.S. economy is headed and how we got here.

LISTEN TO THE LATEST PODCAST

Re: Bank of England split on interest rate policy as consumers struggle

This is the feelings of one such reader from the Telegraph [UK] and his feelings about how he is going survive in today`s turbulent world of financial wheeling and dealing, people need stability in their lives and not these financial whizz kids using the stock market like some kind of children`s toy. He finishes with the words " Wish I Was A Debtor " - how SAD.

Thanks Maxwellgood for your comments.

Re: Bank of England split on interest rate policy as consumers struggle: My savings are intended firstly to help in eventual retirement and secondly, to allow me to spend some of it now.

The former is being made very uncertain by this pronounced and prolonged savers/debtors imbalance - in effect, negative rates eroding the pensions pot. If I had the sort of money mpc members have, then it wouldn't be a problem.

The latter is not possible because of inflation. There's no slack to spend. I have to try to preserve what I have by keeping it in fixed term accounts to get the best rate in order not to fall too far behind inflation.

Rates ought to keep pace with inflation. If house prices fell (it's not certain they would by much), then they will recover after the short term. After 4 years of bountifully low rates few mortgagees should be in potential difficulty - savers shouldn't be expected to cover current debtors risks.

Wish I was a debtor.

Traders Speculating (Praying) That Bernanke Will Announce New Stimulus Scheme This Week In Jackson Hole

Traders Speculating (Praying) That Bernanke Will Announce New Stimulus Scheme This Week In Jackson Hole:

bernanke drops money from helicopters

It has been a year since Ben Bernanke threw his last big bone to Wall Street: The announcement at last year's Jackson Hole schmooze-fest that the Fed had a number of options at its disposal to stimulate the economy.


(Translation: We're launching QE2).


Bernanke's speaking at this year's Jackson Hole this Friday. Wall Street is speculating--or at least praying--that the Fed Chairman will say something similar this year.


This seems a reasonable bet. Bernanke tends to freak out whenever markets tank, and the last month of ~15% declines has wiped $8 trillion off the value of global stock markets.


On the other hand, QE2 was a bust, and Bernanke has already recently promised that the Fed will keep short-term interest rates at zero until 2013. And inflation has been ticking up. So maybe the Fed chairman will hold firm.


More at MarketWatch >


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10 Things You Need To Know Before The Opening Bell (KKR, SPY, GLD, DTG, CAR, HTZ)

10 Things You Need To Know Before The Opening Bell (KKR, SPY, GLD, DTG, CAR, HTZ):

Lindsay Lohan

Good morning. Here's what you need to know.



  • Asian indices were mostly down in overnight trading with Nikkei falling 1.04%. Europe is trading higher and U.S. futures are up.











  • It is being reported that traders expect Federal Reserve chairman Ben Bernanke to begin a third round of quantitative easing to boost the economy, and that is being reflected in record-low yields on U.S. Treasuries. Barclay's expects that traders anticipate $500 billion to $600 billion of Treasury purchases by the Fed.



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Obama's Wall Street Donors Move To Romney

Obama's Wall Street Donors Move To Romney:

oscar schafer

At least 67 Wall Street executives who backed President Barack Obama in the 2008 campaign are abandoning his campaign for former Massachusetts Gov. Mitt Romney's, The Hill reports.


Romney, who founded Bain Capital, is viewed by many as better for the financial sector than Obama — who signed the controversial Dodd-Frank regulatory bill.


Among the donors who have changed sides are Joshua Harris of Apollo Management, Oscar Schafer of OSS Capital Management, David Solomon of Goldman Sachs, Barry Sternlight of the Starwood Capital Group, and David Blitzer of the Blackstone Group.


Obama's criticism of wealthy Americans, as well as his push for the expiration of the Bush tax cuts on the wealth, is cited as a key factor in the reversal.


Only three of the 67 donors have given money to Obama this year, according to The Hill — compared to 36 who hedged their bets and gave to Republicans in 2008.


But Obama is not lacking for Wall Street dollars, holding several multi-million dollar fundraisers in the New York City area in the past few months. His reelection campaign's fundraising far exceeded that of his opponents – and donations from the financial services sector has maintained the same relative strength to other industries.


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22Aug/Mark Carney: Opening statement for appearance before the House of Commons Standing Committee on Finance

22Aug/Mark Carney: Opening statement for appearance before the House of Commons Standing Committee on Finance: Opening statement by Mr Mark Carney, Governor of the Bank of Canada, presented to the House of Commons Standing Committee on Finance, Ottawa, Ontario, 19 August 2011.

Thought this would be of interest to those people that are following these talks.

" My Thoughts & Feelings About The Stock Market "

Just to add my own thoughts about the last post will be simple and to the point, firstly be careful in these turbulent times about trusting anyone telling you how to make a quick buck. They become millionaires by people who believe their chat and invest in their way of spending your money.Many times l have had a conversation with people whose first words are if only l had listened to my heart and not my head, then l would not be coming to you to help me out with the debts l now have accrued through gambling on the stock market.

Some people reading this post will disagree with my word " gambling " but this is what it is in a cocked hat a gamble as no one can calculate risk to the point of finality, there is always a risk and you will find it hidden in the small print. So if anyone tells you this is a certainty or you cannot lose you can but be assured as all wall street bankers will never tell you.

They make money whether you make or lose money as they are playing with your money on their                   " Monopoly Board of Life " not your`s.

My Profiles  

The stock market and you!

The stock market and you!:


Stock markets are in the news everyday and they make an excellent place for spiritual learning Whenever you think or talk about it or invest in the stock market, you would not normally look at the spiritual perspective Stock markets are about buying and selling, profit and loss, bulls and bears and anticipation While people enter the stock market primarily with the intention of making money, there is a spiritual side to trading, and someone who is receptive can learn a lot of lessons about life here.



As in life, the only certainty in stock markets is uncertainty and unpredictability Every morning, although we have a broad idea of how our day is likely to be, we cannot predict with surety about events that might happen or not happen during the day Similarly, every stock trader and broker knows that the behaviour of the markets cannot be predicted with centum confidence While the general trends might be predicted or anticipated, what eventually happens when the markets open and trading begins, is known only minute by minute.


This is true of our lives too, where life flows moment to moment; we can only live in the present Life – which is enmeshed in duality, with its ups and downs, victories and losses The same is true of stock markets, where investors move from happiness to sorrow and from ecstasy to dejection, with cyclical regularity As in life, with stocks too, no one is a permanent winner or loser Change is the only constant Stock markets and life are about being in the present moment, making continuous assessments of the current situation, and then taking whatever course of action seems right to us, at that instant.


And these actions might bring about results which are acceptable or unacceptable One must have the maturity to accept both the good and the bad with equanimity. Life is all about putting in our best efforts and then surrendering to a higher authority or power This letting go is often required in investing too where, after having made a decision, one should not continuously be thinking about it Having done our job, we must let go and let existence take over, and give us whatever returns or rewards Learn to accept that which you cannot change.


At the same time, one cannot afford to be callous or careless, as these qualities always lead to trouble. Life and the stock markets are ruled by two emotions – greed and fear Depending on mindsets of individuals, some might veer more towards greed, while many might act predominantly from fear What is needed is a healthy balance of desire and caution; else we either get too greedy or are too scared Extreme greed and extreme fear lead more to losses than profits and are major causes of misery and unhappiness.


This guest column has been contributed by Pudugram Vaidyanathan.


Source: http://www.speakingtree.in/view-article/The-stock-market-and-you