Monday, October 26, 2009

Currency Devaluation

Pound Is Poised for Goldman Rally Not Helping Brown

Oct. 26 (Bloomberg) -- The U.K. pound, trading at the cheapest level against the euro in a decade, is making everything from Ipods to Toyotas less expensive for foreigners and turning Goldman Sachs Group Inc. into a sterling bull.

Posted by flintster1994 @ 04:24 PM (1243 views)
Please complete the required fields.



4 thoughts on “Currency Devaluation

  • If Goldman Sachs say they’re buying, I assume that means they’re selling like crazy 😉

    Reply
    Please complete the required fields.



  • Ludwig von Mises describes the endgame brought on by reckless expansion of credit: “There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved.”

    Looks like the insane elite have gone for the second option.

    Reply
    Please complete the required fields.



  • can someone explain how a weaker pound has made ipods and toyotas less expensive? Surely if we import the products, a weaker pound makes them more expensive, and if we make them in the uk the raw materials are more expensive? Surely they are only cheaper for anyone who does not hold sterling. Which is almost everybody except those in the uk??

    Reply
    Please complete the required fields.



  • inbreda its the “for foreigners” bit. I believe they are talking about current stock levels. So if you go in a shop and buy stuff that was already imported previously or assembled here, then for them foreign boys buying parity is more beneficial here than say in the Euro zone. The question really is will that last. In terms of HP – for someone to buy somewhere, then the real question is will either the pound fall further (so exchange rate gain) in combination with will the asset value priced in pounds rise or fall.

    Then you get yr excel s/sheet out.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>