The Mistakes of Others
Spyros Andreopoulos,Morgan Stanley
With every bout of weakness in the US economy, investor concern about a possible ‘lost decade' - a repeat of Japan's stagnation and deflation - resurfaces. Yet, similar initial conditions - the bursting of a sizeable asset bubble and excessive leverage in some sectors of the economy - need not lead to the same result. That's because despite the bubble, there was nothing inevitable in Japan's stagnation and deflation.
FX: Euro Crisis Into New Critical Phase
Arne Lohmann Rasmussen,Chief Analyst, Danske Bank
Following the spike in Italian yields and the euro-era-high France-German government yield spread, the European debt crisis has moved into a new critical phase. Sentiment is definitely against the euro at the moment. However, this has been the case for quite a while and the speculative part of the market has been short the euro for a long time. The latter has in fact made it difficult for the market to push EUR/USD lower to any significant extent as „speculators? were already positioned that way. However, as we elaborate below, there is now a rising risk that commercial and pension fund flows will also turn increasingly euro negative.
Euro Uncertainty: U.S. RatesJohn E. Silvia,Chief Economist, Wells FargoGlobalization in the capital markets has once again moved out front as the driving force in setting interest rates.Concerns about the state of Italian and Greek debt are affecting interest rates. At the short end, money market funds have lowered their demand for bank paper— particularly French banks—while on the supply side, French bank LIBOR rates have risen steadily relative to the benchmark three-month LIBOR market rate. Ratings downgrades have reinforced these trends as buyers shy away and sellers need higher rates to entice the remaining buyers.
United States – The Sack of Rome
Chris Jones, Economist,TD Bank Financial Group
In 410 AD, the unimaginable suddenly became reality: Rome, the eternal city, was sacked by Visigoth invaders. Indeed, just as ancient Romans thought their capital city was impenetrable until it wasn’t, few could have imagined eighteen months ago that Italy, Europe’s third largest economy, would succumb to the financial stress it is now under today.
Other Pre-screened Independent Contributors
J-Chart
J-Chart is an innovative charting and bias-neutral market analysis tool. Based on its proprietary theoretical concept and display of market price action, J-Chart provides a much clearer and unique insight into the market than conventional charting methods. This innovative charting and market analysis tool is designed to visualize market price action that constructs unique price patterns called "Equilibriums". Based on its "non-fixed time frame" concept and "Kinetic Equilibrium" application, J-Chart users are able to forecast markets' future movements with high accuracy.
Compiled byDavid Song, Currency Analyst
 |
"Simply a Must Read for Every Serious Forex Beginner" Available at Amazon Now also for Kindle
|
