Reply to: Markets plunge as Merkel delivers euro warning and bans short-selling - the outcome?

[threaded]

However China is seriously peed off with America, as they have lent them a lot of money in the past, and they see that all America do with it is to spend it on pointless wars they do not agree with.

But are they? They keep lending America the money it needs for these wars.

Saying one thing, but doing another...

[suityou01]

The Yuan is pegged to the dollar. For now.

Contentious issue that little puppy. The Yuan is pegged, and this is because America is China's biggest importer. Clothing, equipment in America is all imported from China. However China is seriously peed off with America, as they have lent them a lot of money in the past, and they see that all America do with it is to spend it on pointless wars they do not agree with.

The Iraq war for instance was caused by the fact that Sadam stopped trading oil in $. That was essentially it.

If the dollar peg was removed, China would have to remove it's dependence on the dollar as a reserve currency (it has been dumping the dollar, carefully so as not to trigger a collapse, for many months), and build a big enough export market within the other emerging economies such as India.

[DimPrawn]

Seems like no currency is safe. Are they each taking dibs to devalue? What about the Chinese yuan, how's that been doings? This graph seems to show a remarkable constancy wrt the dollar. Is that right

The Yuan is pegged to the dollar. For now.

[TimberWolf]

Seems like no currency is safe. Are they each taking dibs to devalue? What about the Chinese yuan, how's that been doings? This graph seems to show a remarkable constancy wrt the dollar. Is that right

[SantaClaus]

I'm bringing home an extra £1 every hour thanks to the last 24 hours, why is the euro gaining against the pound now?

One story is that traders are to scared to short euro whilst there is threat of intervention (the Swiss National Bank intervened with their currency yesterday), so they are shorting the aussie instead.

[scooterscot]

I'm bringing home an extra £1 every hour thanks to the last 24 hours, why is the euro gaining against the pound now?

[Doggy Styles]

Brown did not make people get ridiculous mortgages - reasonable people refused to play this tulipy game, sadly most wanted to "own" house more than have sensible finance.

People are people, AtW. This is not some intellectual utopia - there isn't one.

HMG allowed the environment to develop which encouraged all this borrowing. They could not have managed it much worse.

[Sysman]

Having spent only a month here in Germany, it renews my faith in earning euros opposed to pounds, cause they soon could easily be converted to deutsch marcs

Gosh the Germans are actually managing the situation making bold moves writing their future and this guy is so right about the copycat britain, where did we think up the car scrap-page scheme?

Markets plunge as Merkel delivers euro warning and bans short-selling - Times Online

as far back as 2007 I started predicting that Germany and Austria would eventually leave the Euro and together with Switzerland form their own currency. Whether it will be called the Deutsche Mark (a name that brings nostalgia and pride to the heart of nearly every German) or otherwise I don’t know.

<Screams of laughter>

There is NO CHANCE WHATSOEVER of the Swiss or Austrians joining a currency with "Deutsch" in its name.

And that's post #3000 from me

[SantaClaus]

Bollox - it is perfectly safe to keep stocks or euros, what's not safe is to speculate on short selling those - and it should have never been safe in the first place.

One should remember simple thing - Germany exports a lot of stuff so weak euro will make big difference to their economy, either way they win.

Merkel Isolated After Short-Selling Ban Fails to Win Backers

[Moscow Mule]

Bollox - it is perfectly safe to keep stocks or euros, what's not safe is to speculate on NAKED short selling those - and it should have never been safe in the first place.

ftfy

[AtW]

...holding stocks or the euro is not a safe thing to do.

Bollox - it is perfectly safe to keep stocks or euros, what's not safe is to speculate on short selling those - and it should have never been safe in the first place.

One should remember simple thing - Germany exports a lot of stuff so weak euro will make big difference to their economy, either way they win.

[SantaClaus]

When the Germans said they would ban short selling, the market read one thing into it...

...holding stocks or the euro is not a safe thing to do.

All they have done is reduce confidence in the stock market.

Very good analysis here:

http://www.ashraflaidi.com/articles/...ussie-gold.asp

[AtW]

Brown again. When he removed housing costs from the inflation index.

Brown did not make people get ridiculous mortgages - reasonable people refused to play this tulipy game, sadly most wanted to "own" house more than have sensible finance.

[darmstadt]

The Germans weren't the first to do this you know?

Short term memory loss pointer 1

Short term memory loss pointer 3

Short term memory loss pointer 2

[darmstadt]

There was a German, a Greek and a Brit who all went parachuting together. The German jumped first, pulled the cord and gently floated down. The Brit jumped next, pulled his cord and gently floated down. The Greek then jumped, pulled his cord and nothing happened, pulled the emergency cord and nothing happened. He went shooting past the Brit who upon seeing him go past said, "Nothing overtakes me", and promptly unharnessed his parachute.