I reckon the Australian market will crash when the number of members in Aussie Stock Forums doubles within 6 months. When we have everyone interested in it. Like in some countries when they say servants and taxi drivers are talking on mobile phones to their brokers all day. ( I don't want to discriminate any professions here so I won't give a local example)
Cheers.
Inflations have a long history and they don't end well for most. Universally popular at first until the downsides become apparent. And universally hated at the end.This whole scenario is crazy. If rates go down inflation up, what will this mean to average Joe?
Inflation is like perpetual motion. The inflation rises so interest rates are increased and that increases the cost of lining so wages rise to cover the cost of living. That causes inflation so that causes interest rate rises. Then you need the bulls to increase the national asset value to offset the inflation and the cost of interest.
Is it the end of the bull market? Probably it is, and it's time to look for stocks that manage to defy the bear market that is on us.
Today, the big miners slumped in London. Anglo American down 7.5%, Antofagasta down 11%, BHP Billiton down 7%, Rio Tinto down 8%, and Xstrata down 7%.
The FTSE is down 3.2% and the Dow has just reversed sharply to be down 138 points.
Well, raising interest rates in the short term may do this. But the long term effect on money supply is what makes interest rates such a powerful tool against inflation. By making it more expensive to take out loans means less loans and debt - which is the major inflators of the money supply. A decrease in the money supply means any money in the system is inherently worth more - hence this exerts a deflationary pressure.
Some sort of that type of rule would cut spending and encourage savings.
In effect, that's exactly what raising interest rates do! Encourage saving, and cut spending. Having a minimum deposit level is again is very similar to raising interest rates - because people have to delay consumption and save. A difference of what you propose is that it will basically -force- people to save. This can be both a good and not so good thing.
Futures and VIX do not predict or indicate anything, they simply "reflect" the current market. They respond, and do not lead.I don't know how long it will take any gloom to return to the market but the futures market and Vix certainly do not indicate this.
Insider,
Thats why you pick and choose what you need to get through the degree to your satisfaction so you get the job you want at completion. If you want to be a CAD or 3d Studio Max operator, by all means get and learn all those software products. If you want to be an architect I dare say your money would be better spent on a good camera, big books with lots of photos and diagrams and some overseas holidays.
And I guarentee the camera will cost less in 12 months time too.
News of the conduit (ABCPC's) crisis that has not yet been admitted by many institutions continues to concern many in the markets. Major Banks are under huge pressure to step in with their balance sheets to bail the conduits out.
Many Banks throughout the World have built up conduits and conduits are backed by American subprime mortgages. These off balance sheet vehicles used to finance the Banks purchase of assets through the sale of short-term commercial bonds, are typically backed by residential and commercial mortgages.
Some large Banks have admitted exposure: HBOS (Grampian Fund): A$44 billion; Fortis (Scaldis Fund): A$32 billion; Lloyds TSB(Cancara Fund): A$29 billion; HSBC (Solitaire Fund): A$27 billion; ABN Amro (Amstel Fund): A$24 billion; and ING (Simba Fund): A$19 billion.
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