Global financial scene

Camden Tom

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Dec 1, 2002
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I'm sitting here watching the morning financial news (squawk box). It appears that the euro continues it's signifcant slide and the pound is practically collapsing. I'm guessing that the Europeans and the Brits who have purchased DR (dollar based) real estate in the last several months must be feeling pretty good about their investment.
 

amparocorp

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Aug 11, 2002
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it is only Mr. Obama returning the US to it's position as #1 country in the world, even with it's flaws that i know many of you will jump on. the bad news is that this is really p*ss*ng off the russians.............................
 
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"Mr. Obama returning the US to it's position as #1 country in the world, even with it's flaws that i know many of you will jump on. the bad news is that this is really p*ss*ng off the russians............................."

The relative value of the dollar to the DR peso, and the euro is significant to holders of those currencies wishing to exchange them. In the DR, many expats and tourists enjoy seeing their currencies gain in relative strength to the peso.

The strength of any currency is often a matter of international perception. Obama's image as a world leader has certained added to the strength of the dollar, as has his initial moves to sure up the financial structure of the US.

Time will tell how all this shakes out, but Obama has demonstrated his capacity to understand the US economy, and is willing to make the tough decisions to turn things around. Moreover, he has shown that at last the US has a president who has world-wide credibility.

Unfortunately, the Russians aren't the only ones who are ****ed off. There are many who would like nothing more than for Obama to fail during his administration. Among those "well-wishers" are some who are eager to call themselves patriots. They would rather see America fail than have a successful progressive democratic presidency.

Although it's only been a few days, he shows a steady hand and, all in all, so far, so good.
 

Malibook

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I'm sitting here watching the morning financial news (squawk box). It appears that the euro continues it's signifcant slide and the pound is practically collapsing. I'm guessing that the Europeans and the Brits who have purchased DR (dollar based) real estate in the last several months must be feeling pretty good about their investment.
The ones who got a good deal and don't have US$ payments to make are feeling good.

The ones who bought gold will be feeling really good.
 

Malibook

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it is only Mr. Obama returning the US to it's position as #1 country in the world, even with it's flaws that i know many of you will jump on. the bad news is that this is really p*ss*ng off the russians.............................
I like Obama and I wish him all the best but he is no Messiah or magician.
I'd say the US$ rally is more a matter of the unwinding of short positions, dollars needed to meet redemptions, and forced liquidations of other assets.

Making debt payments with more debt is known as a Ponzi scheme and printing money out of thin air is known as debasing a currency.
Some people are using this rally as a good time to unload their US$.
 

J D Sauser

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Nov 20, 2004
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The US financial system is currently chess mate.
They need to raise interest so people do not fall again into the habit of going completely overboard loading up debt and creating a false or unsustainable consumption of goods and on the other hand they need to crush interest rates, so companies stay afloat and half of America does not land on the streets and fight for cardboard boxes to spend the night in.

A little drastic choice of words, I admit, but one gets the picture.

I don't know the solution, but I truly tend to believe, or like to believe that having elected BO may be a first step into a better direction.

The crisis is, as the OP points out, GLOBAL and the DR, sits in the middle of "globality" and won't be able to hide, nor has much of an economy to hedge from to make it quietly thru until "global" sorts out that mess. I don't seem to sense that locals and expats here on this island yet understand the true meaning of how this is going to hit us, this island and region.
But money is slowly getting scarce on the streets... Western Union offices solitary and quite... some locals have even alegedly been spotted putting yet unpaid jeepetas and homes up for sale or rent, althou still at unrealistic prices. We shall see... this year will tell.

... J-D.
 

MikeFisher

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totally agree JD,
that agreement include's Catcher's post above.
and those in the OP mentioned "values" of US currency valued properties over here, that's an other bunch of 'artificial' value/calculation. just because somebody purchased a while back a few acres beachfront and paid in US currency does not mean that he will find a buyer who is willing to buy in US currency or in an other currency but with a exchange rate compared to the strong dollar. just take a look on highly overprized and bancrupt Cap Cana. if you get your property valued over here that paper will show Dominican Pesos, anything else would be just a paper from a real estate agent printed on his laptop on the backseat of his unpaid Jeepeta.
and by the worldwide actual economy's situation i would not await that many buyers are on our roads to purchase much. there is at this moment no cash out there on the globe, so fabulous property values will not feed a hungry stommack or convince a bank for a overdone loan.
right JD,
absolutely right, we will feel the full power of the global crisis over here, too.
we don't have to wait for the start of that feeling,
it already started.
overlooking the movement of several 100% turism dependent businesses i would say that we have in the reservation books for dec08, jan09 and feb09 compared to the same time period 12 months ago a at least 30% deficit, from now til summer i await a 50% downslide compared to 12 months prior, and there's no fast solution in sight, because we are not talking about some small local problem like fixing some pothholes in a damaged street, we are talking about a worldwide financial crash. people will still go on vacations, but they will spend much less money than prior for extras other than the all inclusive package.
those jeepetas and properties with the still overvalued price expectations will go down a lot in their expectations, many will go down under what they costed when purchased a short while ago (on credit of course), and they still will not find a buyer, because there's no buyer with the needed cash at hands, and those sellers need cash to keep up with the monthly payments for their now unfueled Jeepetas or no more effordable properties.
as an non american i see Obama as the best which could happen after decades of clearly non appreciated behavior of an huge powerful country, but that's just my own opinion, not meant as a start of a discussion about it, we have other threads for such open. he seems to be willing to turn that steering around by decisions prior presidencies would not even have considered because it may have showed them in an unpopular way. as a matter of fact that american "business" is a bancrupt one with urgent need of an makeover. i really hope that Obama and his guys get that sinking ship into the right direction, a bettering of that american situation would also be a bettering of our Isle's situation, the whole world is sitting in the same boat on such matter. nobody on board will reach land with dry feet alone or on it's own, but sinking all together could easily happen.
that the russians are pi$$ed of?
who the heck cares?
Mike
 

MikeFisher

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'momentum', ha ha
too fast and steep ups and downs.
not long back that euro been copared to the $ on an incredible and dangerous high, hindering european exportations, too expensive.
then it came down a bit plus the financial worldwide hit in september plus the upcoming change in US leadership, all flattered up and down for one or an other of those reasons, and others of course.
compared to that up and down jumping the peso stayed on the same level during that time, very weird, i don't wanna know what it costed to keep that exchange rate. hopefully it costed the money planned for a metro from st dgo to santiago, lol
Mike
 

Tamborista

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Apr 4, 2005
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true, but there seems to be some momentum.

I do not think I wanna' be in front of the GBPUSD freight train, we broke a 23 year low today in cable, touching 1.3501 on GDP contraction and poor UK employment numbers this week.
 

Berzin

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Nov 17, 2004
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Deregulation of supposedly free markets...I would find this funny if it weren't so pathetic.

While the price of oil spiked to an all-time high of around $140 US a barrel supply never changed, but demand actually went down.

On further investigation the big investment houses (Morgan Stanley and the rest) were the ones artificially driving the prices up via commodities trading. How interesting.

So as the world was struggling and prices for goods were skyrocketing because of high fuel costs, the corporate investment houses were taking us all to the bank.

These same investment houses have received huge cash infusions of our tax dollars as a result of all of their financial chicanery, and we get to foot the bill.

Obama made a huge mistake not taking Paulus to task as to how exactly the bailout money was going to be spent.

Congressman Barney Frank coerced an agreement that some of the money was supposed to go to help struggling families with their mortgages, but it looks like there is nothing in writing to enforce this promise, and Paulus has already stated that he will not do so.

The money that was supposed to go to restore a certain portion of credit flow(banks lending money to each other) was a smoke-and-mirrors magic trick. That money id being hoarded.

A DR1 member stated in another thread that the DR will not be touched by this financial crisis-it will be interesting to hear from people on the ground who own and operate businesses, especially those related to tourism how things are going so far.

This same member also said that the Colonial Zone wasn't that important to DR tourism, yet there was an article a few days ago stating how this area will see an influx of cash to help rehabilitate the area to attract more tourists.

As far as I can see, the real terrorists are these Wall Street tools who have raped our economy and left the middle class holding the bag. And all we can do is print more money for them to hoard.

By the way, that huge emergency that needed our dire attention to the tune of $700 billion-at least 10% of that money went to year-end bonuses for the vultures on Wall Street.
 
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TOOBER_SDQ

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.... forced liquidations of other assets.

Making debt payments with more debt is known as a Ponzi scheme and printing money out of thin air is known as debasing a currency.


You are 100% Correct !!!

Abolish the Federal Reserve !!!

Vote Ron Paul 2012 !!!
 

MikeFisher

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Feb 28, 2006
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Deregulation of supposedly free markets...I would find this funny if it weren't so pathetic.

While the price of oil spiked to an all-time high of around $140 US a barrel supply never changed, but demand actually went down.

On further investigation the big investment houses (Morgan Stanley and the rest) were the ones artificially driving the prices up via commodities trading. How interesting.

So as the world was struggling and prices for goods were skyrocketing because of high fuel costs, the corporate investment houses were taking us all to the bank.

These same investment houses have received huge cash infusions of our tax dollars as a result of all of their financial chicanery, and we get to foot the bill.

Obama made a huge mistake not taking Paulus to task as to how exactly the bailout money was going to be spent.

Congressman Barney Frank coerced an agreement that some of the money was supposed to go to help struggling families with their mortgages, but it looks like there is nothing in writing to enforce this promise, and Paulus has already stated that he will not do so.

The money that was supposed to go to restore a certain portion of credit flow(banks lending money to each other) was a smoke-and-mirrors magic trick. That money id being hoarded.

A DR1 member stated in another thread that the DR will not be touched by this financial crisis-it will be interesting to hear from people on the ground who own and operate businesses, especially those related to tourism how things are going so far.

This same member also said that the Colonial Zone wasn't that important to DR tourism, yet there was an article a few days ago stating how this area will see an influx of cash to help rehabilitate the area to attract more tourists.

As far as I can see, the real terrorists are these Wall Street tools who have raped our economy and left the middle class holding the bag. And all we can do is print more money for them to hoard.

By the way, that huge emergency that needed our dire attention to the tune of $700 billion-at least 10% of that money went to year-end bonuses for the vultures on Wall Street.

looking on booking numbers in case of excursions in turism for dec08, jan09 and feb09 so far i name it compared to the same time period 12 months ago a 30-50% downslide, and it will not recover in any way in short or mid term. businesses need to calculate for 2009 with at least 50% less than they made of an income in 2008, otherwise their too high expectations will leed to a quick business dead. the ones who built their small - medium sized tourism related businesses on bank loans will face a very hard and cold oncoming wind, a very tough time. hotels are still filled, yes, but 2 points are very different:
* right now during peak season the offers of the vaca sellers are cheaper than ever to fill those vacant airline seats and hotel rooms
* the visitors who are coming in have much less money to spend aside the AI week on the beach than they had a year ago
and that trend only just started, i expect it to run ugly soon.
no small island can survive on it's own without getting effected while the whole globe runs throu it's biggest crisis in financial history.
and i totally agree on Berzin's point about who's fault such is. the big guys who move the money and run the stock markets aso played their game and they all made their money out of it, big money.
now that the richest are richer the tax payers have to "help" the wall street millionairs to 'stay alive', that's a nice joke and sorry a matter of fact at the same time.
Mike
 
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Camden Tom

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I do not think I wanna' be in front of the GBPUSD freight train, we broke a 23 year low today in cable, touching 1.3501 on GDP contraction and poor UK employment numbers this week.
I'm certainly no expert when it comes to currency markets but it really makes no sense to me that the dollar is gaining so rapidly against the european currencies at a time when dollars are being printed at a break neck speed. Or, does it just appear that the dollar is doing well because the euro/pound are deteriorating faster than the dollar?
 

J D Sauser

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I'm certainly no expert when it comes to currency markets but it really makes no sense to me that the dollar is gaining so rapidly against the european currencies at a time when dollars are being printed at a break neck speed. Or, does it just appear that the dollar is doing well because the euro/pound are deteriorating faster than the dollar?


The Chinese, Hindus and Arabs as well as, but to a lesser degree, a large part of Latin America are holding huge amounts of US currency. Especially China and India whom have made tremendous amounts of USD incomes in the last years, since the US is importing not only goods, but food and services from them face a problem: They got so much of it, they don't know what to do with it anymore. It's so much, it does in my opinion threaten the US economy as they can black mail the US threatening to dump their USD reserves on the market anytime... sending the Dollar tumbling and triggering a further sell of from every corner of the world. Obviously, it is not in China's nor any other country's financial interest to do that, as it would affect the worth of what they got... but then, one knows of their wicked political ideals and how quickly they can shift from one extreme to an other.
In other words, yes, what we see can at times not seem logical, because we still think USD = USA/US economy. But there are contradictory interests almost just as poweful in the game currently all over the globe.

Interestingly, part of the US real estate bubble in select prime locations (LA, NYC, Miami...) was fueled because of China, India and other USD overloaded countries trying to convert "paper" into something safer, buying up whole high rises and condos by the thousands, therewith raising "demand" and the prices.

... J-D.
 
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Malibook

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The crisis is, as the OP points out, GLOBAL and the DR, sits in the middle of "globality" and won't be able to hide, nor has much of an economy to hedge from to make it quietly thru until "global" sorts out that mess. I don't seem to sense that locals and expats here on this island yet understand the true meaning of how this is going to hit us, this island and region.
But money is slowly getting scarce on the streets... Western Union offices solitary and quite... some locals have even alegedly been spotted putting yet unpaid jeepetas and homes up for sale or rent, althou still at unrealistic prices. We shall see... this year will tell.

... J-D.


right JD,
absolutely right, we will feel the full power of the global crisis over here, too.
we don't have to wait for the start of that feeling,
it already started.

those jeepetas and properties with the still overvalued price expectations will go down a lot in their expectations, many will go down under what they costed when purchased a short while ago (on credit of course), and they still will not find a buyer, because there's no buyer with the needed cash at hands, and those sellers need cash to keep up with the monthly payments for their now unfueled Jeepetas or no more effordable properties.

Mike
A DR1 member stated in another thread that the DR will not be touched by this financial crisis-it will be interesting to hear from people on the ground who own and operate businesses, especially those related to tourism how things are going so far.

This same member also said that the Colonial Zone wasn't that important to DR tourism, yet there was an article a few days ago stating how this area will see an influx of cash to help rehabilitate the area to attract more tourists.
Holy rain on Nals' and Pichardo's parade Batman!:cheeky:

Have no fear Robin, I am sure they will soon dispel all of this loco negativity and discredit these doom-and-gloomers.:tired:
 
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TOOBER_SDQ

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Poppy Cock!!!

my father was british .. in the 50's he had managed to extract some of the last of an inheritance....well when the pound dropped to under 5$us he almost cried.....


Edwarda. Very interesting story. Especially since the Pound was never valued at more than 4.03 US Dollars; at least going back as far as 1940.

Graph of ?/$ exchange rate (1940 - today)

You gibberish has been duly noted... AGAIN.

You should probably take a few days off, but I know you won't, so Ramble On.
 

Camden Tom

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Dec 1, 2002
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Edwarda. Very interesting story. Especially since the Pound was never valued at more than 4.03 US Dollars; at least going back as far as 1940.

Graph of ?/$ exchange rate (1940 - today)

You gibberish has been duly noted... AGAIN.

You should probably take a few days off, but I know you won't, so Ramble On.
Aaaah the internet. What an amazing tool. It's difficult for folks to get away with BS any more.