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Stock Buying Frenzy Intensifies As Economic Woes Evapourate

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http://uk.finance.yahoo.com/news/world-stocks-soar-after-chinese-move-on-yuan-afp-ff8aa788a990.html?x=0

World stocks soar after Chinese move on yuan
12:49, Monday 21 June 2010
Global equities surged on Monday after China said it would relax constraints on the yuan, in a surprise move seen by analysts as an attempt to defuse tensions before a crucial G20 summit this weekend.
FTSE 100 5300.69+0.95%
The Euro only dropped marginally on the Yuan news: $ = 1.23922 from its previous 1.24 level.
Sterling up slightly from 1.4828 at the "close" on Friday to : 1.48553

Given that the FOREX and Bond markets react to reality a little more accurately than stock buyers could it mean that this current phase of "the danger has passed" is momentary delusion?

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http://uk.finance.yahoo.com/news/world-stocks-soar-after-chinese-move-on-yuan-afp-ff8aa788a990.html?x=0

World stocks soar after Chinese move on yuan
12:49, Monday 21 June 2010
Global equities surged on Monday after China said it would relax constraints on the yuan, in a surprise move seen by analysts as an attempt to defuse tensions before a crucial G20 summit this weekend.
FTSE 100 5300.69+0.95%
The Euro only dropped marginally on the Yuan news: $ = 1.23922 from its previous 1.24 level.
Sterling up slightly from 1.4828 at the "close" on Friday to : 1.48553

Given that the FOREX and Bond markets react to reality a little more accurately than stock buyers could it mean that this current phase of "the danger has passed" is momentary delusion?

The past 12 months has been delusional.

Good news...market goes up.

Bad news...market drops a little.

Terrible news...market goes up.

Catastrophic news....market drops heavily, markets suspended, the perpertrator is found and shot, market re-opens.

I for one have run and wont be give my money to the stock market weasels ever again.

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The past 12 months has been delusional.

Good news...market goes up.

Bad news...market drops a little.

Terrible news...market goes up.

Catastrophic news....market drops heavily, markets suspended, the perpertrator is found and shot, market re-opens.

I for one have run and wont be give my money to the stock market weasels ever again.

We're back to 2007:

Weak data - Fed eases, stocks rally.
Strong data - Strong economy, stocks rally.
Consensus data - Lower volatility, stocks rally.
Bank loses US$ 8 billion -Bad news all out of the way, stocks rally.
Oil price up - Good for energy producers, stocks rally.
Oil price down - Good for consumers, stocks rally.
US$ down - Good for exporters, stocks rally.
US$ up - Lower inflation, stocks rally.
Inflation up Good for commodities and asset prices, stocks rally.
Inflation down - Fed eases, stocks rally.
Climate change Soft commodities up, stocks rally.
World ends - Good for disaster recovery companies, stocks rally.

Bank loses $8 billion LOL - amateurs!

(nicked from someone somewhere years ago.)

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http://uk.finance.yahoo.com/news/world-stocks-soar-after-chinese-move-on-yuan-afp-ff8aa788a990.html?x=0

World stocks soar after Chinese move on yuan
12:49, Monday 21 June 2010
Global equities surged on Monday after China said it would relax constraints on the yuan, in a surprise move seen by analysts as an attempt to defuse tensions before a crucial G20 summit this weekend.
FTSE 100 5300.69+0.95%
The Euro only dropped marginally on the Yuan news: $ = 1.23922 from its previous 1.24 level.
Sterling up slightly from 1.4828 at the "close" on Friday to : 1.48553

Given that the FOREX and Bond markets react to reality a little more accurately than stock buyers could it mean that this current phase of "the danger has passed" is momentary delusion?

Is this the stock buying frenzy that sees all the indices lower than they were 2 months ago?

Okey Dokey :rolleyes:

Edited by Tamara De Lempicka

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The GFC has a long way to run.

I recon we are now at the "return to normal" stage.

All my long life I have watched Greedy people going into big debt with the expectation that inflation will wipe away most of the capital that they will have to repay.

I have see the life savings of my father and mother reduced to a token of the personal sacrifice that it took to earn it.

The big question that troubles me so much that I am now having only a few hours sleep every night is Inflation Or Deflation?

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The GFC has a long way to run.

I recon we are now at the "return to normal" stage.

All my long life I have watched Greedy people going into big debt with the expectation that inflation will wipe away most of the capital that they will have to repay.

I have see the life savings of my father and mother reduced to a token of the personal sacrifice that it took to earn it.

The big question that troubles me so much that I am now having only a few hours sleep every night is Inflation Or Deflation?

Indeed. HPCers had better hope its deflation.

In fact, I sense the CBs are starting to coming around to seeing how refreshing deflation will be as they have seen the far greater devastation politically and socially that inflation has wrought up their nations.

US Bonds have not risen which suggests the deflation call is, so far at least, the correct one.

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Not only do stockbuyers think the woes are behind us but it seems that former Commonwealth types are returning to Britain to our improving jobs market:

http://uk.finance.yahoo.com/news/australian-and-south-african-jobseekers-return-to-britain-to-plug-skills-gaps-tele-0d39765ae373.html?x=0

Australian and South African jobseekers return to Britain to plug skills gaps

Louisa "Captain" Peacock, 13:53, Monday 21 June 2010

Job candidates from Australia, New Zealand and South Africa are making a come back to Britain having stayed away or gone home during the recession, according to a recruitment firm.

The number of people visiting recruitment sites in these countries for jobs in Britain has shot up by more than 45pc since January 2010, according to recruitment firm Poolia (Stockholm: POOL-B.ST - news) .

Job adverts from UK businesses to the overseas sites has also increased by nearly 35pc, suggesting employers are desperately seeking to plug skills gaps in Britain by searching abroad for candidates.

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I think there is no where else genuinely to put money... the BBC had an item on the news today about an auction of Monets, Van Goughs, etc, and they were saying the super rich are buying into art big time as this is their preference to having it in cash...

It did remind me of a Japanese bank in the early 90s buying up famous works of art for tens of millions and then I think they topped out buying one of Van Gough's sunflowers for 70 million or something... then the crash happened and, IIRC, they sold it a few years later for much less.

I have just been going through my own accounts and, for my locality with the nonsense of price rises in asking prices and the near zero return I have on savings, I probably should have bought last year... but then there was very little property on the market last year...

What I am saying is I can understand - wish I had their money - why the super rich are getting into art and stocks and getting out of cash. If a bank goes under at least you have the shares in Cisco or the Monet... unless you keep the shares and the Monet in the bank!

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Australia is flooded with Indian, Asian and euro workers.

The jobs shortage is no more. No need for more Hairdressers

Wages and conditions are now fixed.

The Union was crushed 10 years ago.

The AUD or Pacific paso our dollar is stronger than the norm for now, but the pound is big incentive for wage getters.

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And another thing.... whilst I am in rant mode... I actually wish the stock markets were recovering and it was looking more like a bull than a bear-trap... if the market was rising on good economic data I probably would stick most of my house buying fund into shares and carry on renting for a few more years...

Like all of us who missed the market rise the past 15 months... yes, it is obvious now that QE would go into shares but how many of us could afford to risk our hard-earned money in such uncertain times... the situation is now no clearer as to where the markets are going... if anything, after the bull run of the past 15 months and looking at falling consumer sales, falling confidence and rising unemployment, the situation is more uncertain...

But then, maybe it is different this time re commodities, re the rise of China and several billion extra consumers in the World :unsure:

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All my long life I have watched Greedy people going into big debt with the expectation that inflation will wipe away most of the capital that they will have to repay.

I've never met or known anyone who took on big debts in the expectation that inflation will wipe away the (effective cost of the) capital.

Everyone I've ever known who has taken on a (for that time) mega mortgage, has just done it in a mix of fear and hope. No expectation.

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http://finance.yahoo.com/news/10-Things-You-Need-To-Know-siliconalley-2959880487.html;_ylt=Am8jDLATX9as5hTjwJXU4gG7YWsA;_ylu=X3oDMTE2N2xiNDAwBHBvcwMxMARzZWMDdG9wU3RvcmllcwRzbGsDMTB0aGluZ3N0b2tu?x=0&sec=topStories&pos=8&asset=&ccode=

Asian markets were all up in overnight trading, with the
Hang Seng up 3.08%
. European markets are also all up in early trading, and U.S. futures suggest a higher open as well.
China has increased the value of the yuan ahead of the G20 summit, and it is now at its highest level against the dollar since the 1980s. The result has been a
surge in Chinese equities
. Check out 12 charts that show the world going nuts for the revalued yuan
>
Shanghai has seen its property prices fall yet again, down 6% week-over-week in early June. This continues to add to deflationary pressures on the Chinese real estate market. Here's some charts that will make you scared of Chinese real estate >

Bolton was forecasting all of this Asian activity a few months ago. But will it last? If they are going into a frenzied HPC it will take everything with it as confidence will be shattered.

All green bar one (Spain--hmmmm wonder why?):

Americas Last Trade Change Related Information

^BVSP Bovespa (Brazil) 65,465.26 2:14pm 1027.68 (+1.59%) Chart, Components, more...

^MXX IPC (Mexico) 32,814.62 18 Jun 39.28 (+0.12%) Chart, Components, more...

^MERV MerVal (Argentina) 2,320.36 18 Jun 5.82 (+0.25%) Chart, Components, more...

^GSPC S&P 500 (USA) 1,117.51 18 Jun 0.00 (+0.00%) Chart, Components, more...

^GSPTSE S&P TSX Composite (Canada) 11,927.59 18 Jun 0.00 (+0.00%) Chart, Components, more...

Europe Last Trade Change Related Information

^AEX AEX (Netherlands) 341.35 2:29pm 5.29 (+1.57%) Chart, Components, more...

^ATX ATX (Austria) 2,458.80 2:14pm 30.74 (+1.27%) Chart, more...

^BFX BEL-20 (Belgium) 2,560.04 2:29pm 31.11 (+1.23%) Chart, Components, more...

^FCHI CAC 40 (France) 3,744.36 2:29pm 57.15 (+1.55%) Chart, Components, more...

^GDAXI DAX (Germany) 6,298.14 2:14pm 81.16 (+1.31%) Chart, Components, more...

^FTSE FTSE 100 (United Kingdom) 5,303.46 2:14pm 52.62 (+1.00%) Chart, Components, more...

^IETP ISEQ20 (Ireland) 496.37 2:14pm 4.69 (+0.95%) Chart, more...

^SMSI Madrid General (Spain) 1,107.53 27 Apr -24.59 (-2.17%) Chart, Components, more...

OMXC20.CO OMX Copenhagen 20 (Denmark) 421.19 2:29pm 3.95 (+0.95%) Chart, Components, more...

^OMXSPI OMX Stockholm 30 (Sweden) 330.84 2:29pm 2.78 (+0.85%) Chart, Components, more...

^PSI20 PSI 20 (Portugal) 7,488.31 2:29pm 76.99 (+1.04%) Chart, more...

FTSEMIB.MI S&P Mib (Italy) 20,958.91 2:29pm 206.60 (+1.00%) Chart, Components, more...

^SSMI Swiss Market (Switzerland) 6,531.04 2:14pm 83.98 (+1.30%) Chart, Components, more...

^OSEAX Total Share (Norway) 421.80 2:14pm 7.16 (+1.73%) Chart, Components, more...

Asia/Pacific Last Trade Change Related Information

^AORD All Ordinaries (Australia) 4,632.70 7:36am 58.60 (+1.28%) Chart, Components, more...

^BSESN BSE 30 (India) 17,876.55 11:29am 305.73 (+1.74%) Chart, more...

^HSI Hang Seng (Hong Kong) 20,912.18 9:01am 625.47 (+3.08%) Chart, Components, more...

^JKSE Jakarta Composite (Indonesia) 2,941.90 10:00am 12.31 (+0.42%) Chart, Components, more...

^KLSE KLSE Composite (Malaysia) 1,335.29 9:50am 17.60 (+1.34%) Chart, Components, more...

^NZ50 NZSE 50 (New Zealand) 3,068.25 6:31am 20.75 (+0.68%) Chart, Components, more...

^N225 Nikkei 225 (Japan) 10,238.01 7:29am 242.99 (+2.43%) Chart, more...

^NSEI S&P CNX NIFTY (India) 5,353.30 10:59am 90.70 (+1.72%) Chart, Components, more...

^KS11 Seoul Composite (South Korea) 1,739.68 10:03am 27.73 (+1.62%) Chart, Components, more...

000001.SS Shanghai Composite (China) 2,586.21 8:00am 72.99 (+2.90%) Chart, Components, more...

^STI Strait Times (Singapore) 2,885.64 10:10am 52.24 (+1.84%) Chart, Components, more...

Africa/Middle East Last Trade Change Related Information

EGX30.CA CASE 30 (Egypt) 6,547.13 1:26pm 28.04 (+0.43%) Chart, more...

^TA100 TA-100 (Israel) 1,048.92 20 Jun 16.08 (+1.56%) Chart, Components, more...

Edited by Realistbear

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I've never met or known anyone who took on big debts in the expectation that inflation will wipe away the (effective cost of the) capital.

Everyone I've ever known who has taken on a (for that time) mega mortgage, has just done it in a mix of fear and hope. No expectation.

Yes you are correct.

The greedy people I was talking about are investers

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And another thing.... whilst I am in rant mode... I actually wish the stock markets were recovering and it was looking more like a bull than a bear-trap... if the market was rising on good economic data I probably would stick most of my house buying fund into shares and carry on renting for a few more years...

Like all of us who missed the market rise the past 15 months... yes, it is obvious now that QE would go into shares but how many of us could afford to risk our hard-earned money in such uncertain times... the situation is now no clearer as to where the markets are going... if anything, after the bull run of the past 15 months and looking at falling consumer sales, falling confidence and rising unemployment, the situation is more uncertain...

But then, maybe it is different this time re commodities, re the rise of China and several billion extra consumers in the World :unsure:

Well let me tell you

I got into the share market at what I thought was a great bargain and rock bottom.

Only to see my capital reduced by 30%

O the agony

After the governtment intervention the shares started there up ward trend

I got out happy with the smallest of profits.

One thing for sure if the market crashes once more

There will be no quick fix

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Well let me tell you

I got into the share market at what I thought was a great bargain and rock bottom.

Only to see my capital reduced by 30%

O the agony

After the governtment intervention the shares started there up ward trend

I got out happy with the smallest of profits.

One thing for sure if the market crashes once more

There will be no quick fix

I am glad you managed to recoup your losses blue skies...

No, I would not put my money in in these uncertain times - I simply can't risk nor afford it and I suspect that goes for 90% of HPCers if not more.

What I meant was that if the economic conditions were mid-90s again... falling unemployment, rising consumer demand then sticking your money into blue chips for a few years - ones that would pay a divi and expand from consumer demand - would make sense... but not now... definitely not now...

I think if you invest now you have to be prepared to lose 90% of it in a huge crash.

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Here is a simple fact money goes to were it does best.

If we have deflation than holding cash is best because the buying power of your capital is incressing.

If we have inflation and the Government is unwilling to rase interest rates (that is how it seems just now) than if you hold cash you will be wiped out.

If the Government is willing to fight inflation with high interest rates that holding cash will be a winner as share prices and property will come down.

I am betting that infation will not come , but! The Government are only people who make mistakes like all of us. I have not much trust in there ability to get things right.

Remember they sat on there hands at the leed up to the GFC

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I think there is no where else genuinely to put money... the BBC had an item on the news today about an auction of Monets, Van Goughs, etc, and they were saying the super rich are buying into art big time as this is their preference to having it in cash...

Perhaps we could all pool together and buy ourselves a nice shared Monet? :)

You don't have to be super rich to find alternative investments though. If you know what you're doing, there are plenty of affordable alternatives. Vintage guitars, collectables such as toys, antiques etc etc. I was going to start a thread about it in the OT forum.

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Emergency budget to ‘save’ Britain from fate of debt-stricken Greece

By Business Reporter

Monday, June 21, 2010

THE biggest threat to Britain’s economy is its huge budget deficit, and an emergency budget tomorrow will save the country from the fate of debt- stricken Greece, British finance minister George Osborne said yesterday.

Measures expected to be included in the budget include a pay freeze for Britain’s six-million-strong public sector, a £3 billion (€3.6bn) bank levy and welfare benefit reform. Other plans include payroll tax breaks for new businesses and reform of public sector pensions.

"You can see in Greece an example of a country that didn’t face up to its problems, and that is the fate that I want to avoid," Osborne told the BBC.

"I’m absolutely clear, I don’t want the question even asked, ‘Can Britain pay its way in the world?’ I’m going to prove on Tuesday that we can," he said, adding that the budget’s austerity measures would be staggered over five years.

Britain’s budget deficit is at about 11% of national output and reducing the deficit is the centrepiece policy of the new coalition government, made up of the centre-right Conservative Party and centre-left Liberal Democrats.

Tomorrow’s budget is expected to be the tightest in at least 30 years and with public sector job losses and deep pay and benefit cuts expected, the plan is likely to stoke public discontent and strain the fledgling ruling alliance.

Osborne indicated capital gains tax – a tax on the sale of assets such as real estate and shares – would rise, despite vigorous opposition from senior Conservative politicians.

The levy is currently 18% and some workers switch their income revenue, which is taxed at between 20% and 50%, to capital gains to pay less tax.

"Here is a tax where at the moment we see massive income tax evasion, we see people shifting their income... and that’s not fair given the current situation, so we’ll deal with that," Osborne said, without saying by how much the levy will rise.

He also raised the prospect of unilateral action to impose a bank levy, aimed at clawing back some of the billions paid by the state to bail the financial sector out after the 2008 financial crisis.

One of the few sweeteners expected in the budget is a payroll tax holiday for the first 10 employees hired by new businesses outside of Britain’s southeast, government sources said.

The maximum a business can claim per employee will be £50,000 (€59,833) a year for those earning less than £44,800, in a three-year scheme costing £900 million and meant to boost the economy in less prosperous parts of Britain.

Read more: http://www.examiner.ie/business/emergency-budget-to-save-britain-from-fate-of-debt-stricken-greece-122923.html#ixzz0rUv42yof

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stock markets up , gold is up , now we just need houses to be up and everyone is happy!

Stocks Jump as China Eases Currency Policy-
AP
Stocks are extending a rally after China said it will allow its currency to appreciate against the dollar, a move that could provide a boost for U.S. manufacturers and exporters.

A lot of stuff is up--the pound (1.4833) is about where it left off on Friday (1.4828) and the Euro is down a little vs. the $ at 1.2384.

DOW soaring and up over 100pts early on in the running.

Gold is the only thing down and then only by 360 ticks.

The US love the Chinese right now as the soaring Yuan will dampen their exports while helping US exports.

Everything is looking rosy and bright, We have packed up all our troubles in a little Brown bag and go merrily along.

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S&P opens up plus 2% or whatever and then peters out...get shorty right now for the forthcoming multi month falls ahead.

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  • 258 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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