the rate is now 2.25%... and you won't feel the affects of all the rate cuts, stimulus packages, etc... for another 6months cuz it still needs time to trickle down from banks to you... buying USD now is partially a joke haha, but is a good idea because frankly, the USD will never have a fall out... it will rocket back up within the next 6months to 1yr... besides the US, China and Japan will probably try to bring it back up... if USD scares you still, then by US assets works the same way =/ and G man, there won't be a single currency for a long, long time... the only way it will work is if the world became one state... =/
You just said the gov't wasn't doing anything. The gov't, Fed has cut the RR, DR by a lot, and quite often, thus OFTEN, but not ALWAYS reflecting in a drop in interest rates (whether it be savings, or getting a loan). Too much, too fast for people to really take advantage of it IMO. The gov't has done a bit too much IMO. You don't see the bail-outs? The buying of securities. I agree the Bush Admin sucks, but it's not entirely him. The economy though and success of it is attached to the presidency. But again, the US Gov't is eatting it. I think it's good, but then it's a shame how many big corporations have fallen. It's not easy for a company to succeed and hold so many years, it's just sad. But oh well, it's great fo Not everyone would get the $600. Those who fall into the 'USD' sucks category don't realize the cycle of things. USD is never going to collapse. It might not have the buying power due to fuel costs and bad economics, but the 'VALUE' will hold true. DISCLAIMER : that's just my opinion. I will probably invest in a few months as I begin FT work, but I'm not in a rush. IMO the stock market is shady, and big insiders get the biggest gain. It's all about tax brackets and where you stand. Stupid gov't.
^ lol when i said they weren't doing anything, it really meant they weren't doing anything that has changed/reversed the economic status and could be seen happening Yeah the U.S. Dollar may not collapse but the buying power is clearly what matters most to the citizens of the US... the people in UK come over here and think its the damn flea market.....lmao
LOL !! I suppose in a way. I gotta be positive and see it that way. Ain't they buddies in the US LEAD COALITION war. I mean, USA ain't king and it's good that this tames people in many ways, or at least hope. US has been seen as the country that doesn't 'save'. Maybe this will teach em something. :box:
problem people in the UK, EU don't realize is their exports are gonna get shot... they're in much deeper shite than the US is if the USD don't turn around soon... that's another reason why the world won't fall into one currency any time soon... the EU's all ready having trouble dealing with inflation... newayz... the cost of fuel HAS NOT CHANGED very much... the problem lies in the fact that the Dollar is the main exchange currency... and since the value of the dollar has fallen, the price of oil is being inflated... that's all...
Can you explain the truth behind fuel costs. I am quite stupid. I heard about something like that. So your saying the demand to buy oil pushed the price, not because of 'real' shortage. Since oil is traded more than stocks as asset? *Seeing as it's no use. I'm sure production is a factor, but not big enough to push it.
currently the US has the greatest stockpile of oil EVAR!!! it's rediculous to believe that there is an oil shortage because damn it there isn't one... Production hasn't been set back either... Oil hitting $90 a barrel, that was all speculation... then to make it worse, the dollar in value keeps falling, that's why we're seeing $110 a barrel right now... if the dollar did not fall so much, oil shouldn't be more than $95 a barrel... so to make it easier to understand... say 1000YEN = 1 barrel of oil = 100USD(USD is the oil standard) the value of USD falls, but the value of oil stays the same, so the USD must compensate... so now 1000YEN = 1 barrel of oil = 110USD... that's why our cost for oil is now so high... of course that's all very basic... there's still the matter of having to exchange foreign currency into dollars inorder to buy oil...
^^ From a macro POV, how would it play out? So if the USD is STRONG, what would that mean for other countries? It would mean that these countries see an increase in price on their end because of a STRONGER dollar? Isn't it true though, that since the dollar is weak, other countries pay less for the oil and thus by market, increase the price as well? But by natural economics, oil prices rise due to external factors. Such as demand, and etc. I recall Katrina and many events that 'momentarily' affected it. Though, the trend has always continued upward. Thanks. *I learned something. Sorry I am so stupid.
no, the value of oil for every country remains the same, the problem is you have to first convert your foreign currencies into dollars, then you may purchase oil... the key is the standard in which people sell oil is the USD... for example... If for today 1CAD = 1USD = 1OIL If tomorrow 1CAD = 2USD, then it will require 2USD to buy 1OIL, but only 1 CAD to buy 1OIL... cost for Canadians stayed the same, cost for Americans just doubled... That's basically what's happening, foreign countries aren't paying less, they pay the same as before... whatever changes in cost of oil they pay, we pay double in that example... as far as market demand is concerned, it really is starting to have an effect with China, India and the parts of the Middle East(fcking Dubai) starting to kick into industrial high gear... it adds up, but it's not the main reason why oil is now $114 a barrel...
I understand it a lot better. To clarify, oil is traded in 'dollars'. Many foreign markets use the 'dollars' on the international market. Therefore if the USD is weak, they need to increase the price of oil to compensate the buying power. I can see it like this. EX: TODAY = 1 USD = 1,000 YEN TOMORROW = 1 USD = 500 YEN So if Japan normally sells oil for $90/barrel it will get $90 x 1,000 = 90,000 YEN. However, if USD drops, then $90 x 500 = 45,000. Therefore it raises the price to compensate. However the market is trading it at. There are also many other factors. Still, I wonder how the fine details. I know a lot of people are buying into oil. Thanks.
I have two years of full-time investment experience, during this time there were bull and bear markets. The following are a few key lessons learned that I think will benefit new and old investors. 1. Never Never buy into losing position, i.e. if you are holding a losing stock, do not buy more. If you stick to this rule, you will be right more than wrong. 2. Quick in cutting losing stock, and slow in selling winning stock. 3. Must do your homework, never trade on hearsay. 2.
i am no expert but i am doing okay now with the stock market. it's all about luck, timing, and discipline. unfortunately, my retirement savings are out the window.
it's not about luck... there are ways to reduce the risk of investing, as a rule of thumb, u should always make roughly 12% interest back annually on the stock market... if ur not, then something is wrong... i.e. what happened over the last month or so heh... but even so most people would have pulled out and bargain hunted and still made out all right... limmay is right, u gotta do ur homework, crunch ur own numbers, they're easily found on yahoo...
doing your homework is correct .. no doubt about it but during this time of uncertainty, homework doesn't really help. nothing is accurate and so you kinda use common sense and basic finance 101 to avoid risk and losses. for example, i bought $500 of wachovia stock at $0.01 per share when everyone was selling it off like crazy after the announcement that citigroup has bought it. of course, everything went back up when the deal didn't go through and it's at $5 something. to me that's pure luck and timing. if i was any rational, i wouldn't have bought it. after all, wachovia suffered huge losses due to the mortgage crisis. i didn't buy washington mutual and their stocks were taken off from NYSE; the same went with lehman bro .. anyway, my pt is that homework can help minimize risk in a stable market and econ but now, it's not so much useful.
wachovia never hit .01, lowest point was .75 even prior to the announcement during pretrade -.-;... wachovia also shot back up as a result of the proposed deal with Citi as would be expected anyways... the only reason it dropped down so low was idiots actually believed majority shareholders would hold out rather than let it go forcing the FDIC to take control, which didn't happen of course... and the day b4 the Wells Fargo deal, there were all ready updates on Wachovia + WF... all of this isn't luck, u just had to pay attention -.-;
oops .. yeah .. it was washington mutual that was $0.01 .. lol .. anyway, wachovia was a good buy .. i still think it's luck cuz i don't pay much attention to the market. i do watch the 10 PM news every night but that doesn't help me much since the market is closed by then.
