Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
Free markets? Unfettered capitalism? Government getting out of the way so that businesses can operate? Not exactly. Try mercantilism, national industrial policy, and monetary protectionism.
Japan's finance minister jolted currency markets early Thursday after he signaled that the Japanese government is prepared to intervene in the foreign exchange to support the dollar and euro and drive the yen lower.
The yen Thursday weakened 1.25 yen to 88.39 yen versus the dollar on the news. The yen also weakened 1.5 yen to 128.70 versus the euro. Both pairings had spiked significantly higher immediately after the finance minister's comments were published.
Finance Minister Shoichi Nakagawa said he has "the means" to limit the yen's advance.
In the modern era, Japan has periodically intervened in the market to drive the yen lower and support the dollar to prevent the yen from becoming too strong versus the dollar, and the world's other major currencies. A strong yen hurts Japan's export sales, including cars, by making those cars too expensive for foreign consumers.
The dollar has fallen more than 21% versus the yen this year -- and about 10% in the last three weeks -- due to more than $1 trillion in mortgage-related losses, a U.S. recession, and U.S. Federal Reserve and U.S. Treasury interventions aimed at jump-starting the U.S. economy.
Currency trader Andrew Resnick, who was stopped-out for losses with dollar-short trades, said the Japanese finance minster's comments were enough to sideline many traders. "So much for free markets," Resnick said. "Seriously, the markets had been anticipating this for some time. Japan is now signaling that the dollar's fall against the yen has limits, it can only go so far. The sense here is that 80 yen is the limit, but Japan may try to defend 85 yen."
Economic Analysis: Some have argued that Japan would let the dollar fall against the yen, and let the market determine the price of Japan's cars exported to the west. Not exactly. If the dollar falls too far, Japan's cars will cost too much, hurting car sales -- a major sector in Japan. Hence, as in previous periods of dollar weakness, Japan will intervene to support the dollar and, by extension, protect their share of the international auto market.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
12-18-2008 @ 5:37PM
morton said...
question # 1.
if car company go b.k, all suppliers that are owed money lose. if the big 3 get the dollars, will they pay all the bills they owe
or, the bills that are due, never get paid.
question # 2
fort knox, how much gold is there, in dollars today prices of gold ?
12-19-2008 @ 4:47AM
sharehottips said...
Golden Rules of Trading
- Plan your trades. Trade your plan.
- Keep records of your trading results.
- Keep a positive attitude, no matter how much you lose.
- Don't take the market home.
- Forget your College degree and trust your instincts.
- Successful traders buy into bad news and sell into good news.
- Successful traders are not afraid to buy high and sell low.
- Continually strive for patience, perseverance, determination, and rational action.
- Limit your losses - use stops!
- Never cancel a stop loss order after you have placed it!
- Place the stop at the time you make your trade.
- Never get into the market because you are anxious because of waiting.
- Avoid getting in or out of the market too often.
- The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
- Always discipline yourself by following a pre-determined set of rules.
- Remember that a bear market will give back in one month what a bull market has taken three months to build.
- Don't ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.
- Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.
- Split your profits right down the middle and never risk more than 50% of them again in the market.
- The key to successful trading is knowing yourself and your stress point.
- The difference between winners and losers isn't so much native ability as it is discipline exercised in avoiding mistakes.
- Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.
- Dream big dreams and think tall. Very few people set goals too high.
A man becomes what he thinks about all day long.
- Accept failure as a step towards victory.
- Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker!
- You don't invest ...You will lose.
- You don't manage risks ...You will lose.
- You follow tips ...You will lose.
- You don't investigate before you invest ...You will lose.
- You panic ...You will lose.
- You want to speculate ...You will lose.
- You don't understand your finances ...You will lose.
- You don't use cost averaging ...You will lose.
- You want to play ...You will lose.
- You are greedy ...You will lose.
- You place all your eggs in the same basket ...You will lose.
- You don't know when not to invest ...You will lose.
- You don't know when not to exit ...You will lose.
- You can't afford to lose ...You can't afford to make a profit.
www.Sharehottips.com
www.vaibhavmicron.com
Vaibhav International
25, cement Gali, Dholi Bawri, Udaipur(Rajasthan)-India
Email : info@sharehottips.com, sharehottips@gmail.com, sharehottips@rediffmail.com
For any query contact us:--
Ph.: + 91 94142 33706, 93524 9776 (After 4 PM to 9 PM)
Yahoo messenger Id is sharehottips@ymail.com