Euro Currency Trust (FXE)
-
Quote & Analysis
-
Forum
Loading...
Symbols:
FXE Forum Topics
- All Comments on FXE
- General Discussion on FXE
- October 9, 2008: Remember the Date - This is Huge [view article]
- The Great Dollar Pump of 2008: A Doomed Central Bank Intervention [view article]
- The Euro Shows Its Real Colors [view article]
- U.S. Dollar: Best of the Worst? [view article]
- Global Market Roundup: Will the Bailout Work? [view article]
- Will the Euro's Survival Be at Risk? [view article]
- Monetary Madness: Global Margin Call Underway [view article]
- Global Liquidity Crisis: What Now? [view article]
- What the Retail Layoffs Are Telling Us [view article]
- Non-Farm Payrolls: Enough for a Fed Rate Cut? [view article]
- Eurozone Divided By Banking Crisis [view article]
- A Look at a Market That Punishes Risk [view article]
loading ...Recent FXE Articles
- The Euro Shows Its Real Colors
- October 9, 2008: Remember the Date - This is Huge
- U.S. Dollar: Best of the Worst?
- Will the Euro's Survival Be at Risk?
- Monetary Madness: Global Margin Call Underway
- Financial Crisis Hits Europe: Coordinated Response May Be Hard to Come by
- Currency ETFs Shine Through Bleak Market
- What the Retail Layoffs Are Telling Us
- Global Market Roundup: Will the Bailout Work?
- A Look at a Market That Punishes Risk
- Full List of Articles »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »
Profiting from the $700 Billion Bailout [view article]
It is obvious to most that when you arteries are clogged, the blood doesn't flow. When you have blocked arteries it is an emergency, and to avoid a heart attack it is critical to get the blood flowing, which implies the use of a stent or open heart surgery. A complete blockage will result in a heart attack or worse. Time is critical, and the required correction is an emergency.Analogous to your vascular system, the financial markets are the arteries of the economy. Analogous to your arteries, when the financial markets are frozen, the monetary supply does not flow. This creates an emergency situation where it is imperative that we restore the monetary flow.
In today's environment it is critical that we on an emergency basis thaw the financial markets thereby enabling the required monetary flow. There is not a lot of time to react. Waiting too long will create a severe recession or a depression.
Reply
editorial
collective
Profiting from the $700 Billion Bailout [view article]
There are three thousand community banks that are capital starved or near capital starved.When Wall Street absorbs the $700 billion, Main Street banks will pay dearly to maintain their capital ratios.
It makes more sense to distribute the $700 billion to American community banks so they can lend for local transactions or the local banks can use it to recapitalize Wall Street. Reply
Profiting from the $700 Billion Bailout [view article]
George Bush has fooled the Democrats once before and that got us into a needless war, which I call BLACK HOLE NO. !. Now he is at it again and the Democrats are caving in again. How stupid can they be? BLACK HOLE NO. 2 will be bigger and move the country into a depression. No matter what congress does the market is headed for a 40% dip, but not right away. However, the US dollar will weaken and gold will rise as they did when the bailout was announced. ReplyInsight
Profiting from the $700 Billion Bailout [view article]
Good article.I agree with what Hedge fund operator, Eric D. Hovde has said. Wall stret and the banks responsible for this mess should not be bailed out. Secretary Paulson has some serious conficlt of interest here between bailing out his wall street buddies and the best interest of the tax payers. Reply
r
Profiting from the $700 Billion Bailout [view article]
So your friend's house appreciated a half million Canadian dollars.So what? What does that say about our current financial crisis? Nothing. If he wants another similar Canadian home, guess what. He will have to spend a bunch of millions of Canadian dollars. (And then lose them all when their asset bubble pops)So the exchange rate changed. That is completely a separate issue which you poorly explain by mentioning a home that nearly doubled in value in its home currency. Exchange rate arbitrage is totally overrated. Try moving just 100 miles within the US and see what I mean.
Reply
Profiting from the $700 Billion Bailout [view article]
Let me speak up here. If the US has 700 billion to boot around why not spend it on infrastructure, roads, bridges, hospitals , schools, universities etc. That would yield tens of thousands of jobs and have a solid foundation for generations to come. Conversely taking 700 billion and putting it into a black hole will put a debt and tax burden on the American people for generations to come. I am a Canadian and am outraged at the audacity of your president to suggest a bailout is the only way. NOT. Give the money back to the people... don't give them a giant bill they will never ever be able to repay. I just don't get your leaders today. Rob from the poor to give to the rich and tell us that is far to complicated for us to figure out and just trust us. You gotta be joking right?? ReplyProfiting from the $700 Billion Bailout [view article]
Let me speak up here. If the US has 700 billion to boot around why not spend it on infrastructure, roads, bridges, hospitals , schools, universities etc. That would yield tens of thousands of jobs and have a solid foundation for generations to come. Conversely taking 700 billion and putting it into a black hole will put a debt and tax burden on the American people for generations to come. I am a Canadian and am outraged at the audacity of your president to suggest a bailout is the only way. NOT. Give the money back to the people... don't give them a giant bill they will never ever be able to repay. I just don't get your leaders today. Rob from the poor to give to the rich and tell us that is far to complicated for us to figure out and just trust us. You gotta be joking right?? ReplyProfiting from the $700 Billion Bailout [view article]
Re: logicalthought. You are correct and that was what I observed when reading through the piece. I haven't thought through all the ramifications of the bailout yet (who can know the future?), but at some point the government is going to own a lot of homes. Until the average price of those homes (now around $215,000) declines to 3x the median family income ($50,000) there is not going to be stabilization. That would be with stabilized employment, which isn't happening. In addition, we know that the free flow of mortgage money is shut down now and if banks are going to avoid this disaster in the future, they have to demand more downpayment, higher FICO scores, higher income to debt ratios, etc from borrowers. It seems to me that all those good people are probably already in homes. Why would they want another one? Do you really believe that there are millions of folks just sitting around in apartments with $40,000 in the bank, no credit card or auto debt and good secure jobs who are patiently waiting for home prices to come down? I don't know of any, but maybe somewhere in Iowa. Not in California, Nevada, and Florida where the problems are. People are leaving those states for financial survival. ReplyProfiting from the $700 Billion Bailout [view article]
Doing nothing will indeed be painfull in the short term. Very painfull. It will also be the best thing that could happen to the US in the long run. It would be the best thing possible for our childrens children. We wil however, accept the easy way out and do the bailout and prolong the eventual devestation that will only get worse over time. We are to soft and greedy to do what is right for the long term benifit of our country and our future generations! Replyr
Massive Opportunity to Short the Dollar [view article]
Re: FXC, FXEIn the case of the insolvency of the Depository or JPMorgan Chase Bank, N.A. the U.S. bank of which the Depository is a branch, a liquidator may seek to freeze access to the Canadian Dollars held in all accounts by the Depository, including the Deposit Accounts. The Trust and the Authorized Participants could incur expenses and delays in connection with asserting their claims. These problems would be exacerbated by the reality that the Deposit Accounts will not be held in the U.S. but instead will be held at the London branch of a U.S. national bank, where it will be subject to English insolvency law. Further, under U.S. law, in the case of the insolvency of JPMorgan Chase Bank, N.A., the claims of creditors in respect of accounts (such as the Trust’s Deposit Accounts) that are maintained with an overseas branch of JPMorgan Chase Bank, N.A. will be subordinate to claims of creditors in respect of accounts maintained with JPMorgan Chase Bank, N.A. in the U.S., greatly increasing the risk that the Trust and the Trust’s beneficiaries would suffer a loss.
From the prospectus.
Does this concern anyone? Reply
ht
Profiting from the $700 Billion Bailout [view article]
You've got at least one thing backwards: doing nothing would trigger a "surge of DE-flation." ReplyProfiting from the $700 Billion Bailout [view article]
'Doing nothing will probably catalyze a global recession and sink the Dow to 8,000 or lower. Tens of millions of people around the world will lose their jobs and their homes, triggering a surge of inflation that will make the U.S. dollar worthless.'HAHAHA....
How is this going to happen? Aren't the problem assets only home/auto/credit card loans made in the U.S.? The worst that could happen is contraction in credit (acutually good) and contraction in manufacturing in China/Japan in their export industries. The latter can trade with themselves more: cars for toys and rice. Reply
Is U.S. Dollar Weakness a Recession Indicator? [view article]
But...A depreciating dollar makes U.S. exports more attractive, increasing demand for U.S. goods, which results in a decrease in the trade deficit and increase in U.S. employment (countering factors in the Are-We-In-a-Recession question). Reply
The Great Dollar Pump of 2008: A Doomed Central Bank Intervention [view article]
The Fed is trying to fight a contraction in the money supply. Losses on assets have a huge impact on bank reserves. There is nothing they can do other than some huge Trillion dollar bailout of their Wall Street buddies.This just shifts the burden of all the losses to the tax payer and the institutions they decide not to bail out. Think of the power the Treasury will have. If a bank does not contribute to their political party they will just cut them out of the bail out money.
I am not really sure what is going to happen in the long run. I am afraid we are going to see hyper inflation and/or the Treasury having to default on the national debt. Once all trust in the government and the dollar is gone we could plunge into something much more brutal than the great depression. Reply
The Great Dollar Pump of 2008: A Doomed Central Bank Intervention [view article]
1. intensive purposesA misuse of the phrase "intents and purposes", meaning "reasons and motivations". Ironically, when an uneducated person wants to seem articulate, they often butcher common phrases, thereby revealing their airheadedness. Reply