Jason Mark

9 Comments

    • The Bank of England Wants More Collateral Than The Fed [view article]
      I agree that we have much in common with the Brits, but to say that the BoE has a smarter approach is wrong. By the BoE discouraging the relase of info about which banks are in need of liquidity and which ones aren't is stupid. Investers want to know this info so that the markets can be fairly evaluated. If there is a 6 month lag in info there will be volital swings in the pricing of financials for another six months. Transparency is what is needed to sort out the market. Lets be honest, most banks large and small are in need of liqidity. Some will raise it by borrowing from the Fed or in England's case the BoE, accept investments from sovreign wealth funds, or attempt to increase deposits by keeping their intrest rates steady in a decreasing rate environment. Let's just come clean so we can put this all behind sooner. Apr 23 09:30 AM
    • 10 Reasons Why the Dollar Will Strengthen [view article]
      The surpluses will shrink a bunch but not melt away. The Buffets of the world are probably still dollar bears becuase they believe a bottom for the dollar has not been reached. Apr 01 07:31 PM
    • Has Wall Street Lost Its Edge? [view article]
      What happened on Wall Street is a case of greed and short sidedness! People complain about declines because it may mean they can't continue to pay for that Hummer and 4,000 square foot house without overdrawing bank accounts. People want to live the lifestyle of a million $ on $40,000. Mar 30 06:50 PM
    • Time To Short the British Pound? [view article]
      The Euro is proabably heading towards a state of being at a 1:1 valuation versus the Pound but I believe that the USD will appreciate against both the Euro and Pound in the long term. The currency that should rise against all three is the Chinese if allowed to float. I suspect that the UK will be in a similar situation that the US is in now so the time spent being at an even valuation with the Euro mabe short. Mar 30 06:30 PM
    • Today's Lesson: Why the Fed Raised Its Rates in 1931 [view article]
      If the dollar is to rise in value a combination of two things must happen. Other countries begin investing more heavily in the U.S. supporting economic growth while the price of money goes up in effect making it more expensive to borrow. I know lowering interest rates makes borrowing money more attractive, but it doesn't change WHO should be borrowing. There hasn't been enough time between Greenspan's cuts and the current cuts for the dollar to have had time to recover. We've gone from one bubble to the next. Remember also that higher interest rates make money more expensive which adds value and higher interest rates provide greater returns on interest baring accounts which makes those accounts more valuable. Lower interest rates to the opposite on both counts. Mar 26 09:17 PM
    • Dollar Must Get Weaker Before It Gets Stronger [view article]
      Look, printing more money for the sake of printing more money doesn't do anything. It just sits there. If banks aren't willing to lend it out then who cares. Greenspan can't print more money special1person thats the Treasurey's job. The dollar will go up in value when foreign investment starts flowing back in masses to the US. Before this can happen though, Europe has to look too expensive and China slowing down which I believe is about to happen. Then the US will look more appealing which will lead to a stronger dollar. Yes this will take time to unfold. China will continue to be put under pressure to let its currency float and the euro will continue to appreciate to the point where its too expensive to do business there. Only time will tell. Mar 25 06:36 PM
    • Will the Euro Overtake the Dollar as World's Reserve Currency? [view article]
      What economic advantage does the dollar as the world's dominate reserve currency give to the United States? Other countries (mainly opec countries and rapidly growing countries like China and India) began holding dollars after WWII because the economies of Europe were crushed by the war. The dollar was the most stable currency and was appreciating. Lets face it, if it wasn't for US investment into Europe and Japan after WWII then those economies would have taken much longer to recover save mabe GB and France. If the dollar contiinues to lose value at an alarming rate then things will change, but lets remember that the GB Pound had been more valuable than the dollar for some time but you haven't seen a shift to that currency. I believe its more a political move than any to switch to the euro. America's role as a source of investment in the middle east is going to change drastically in the next 10 years. Mabe not in terms of $ but in terms of how and what will be invested in. Mar 25 06:25 PM
    • Weak Dollar is Bad For America - and ETFs [view article]
      I agree that long term a strong dollar is very important to the US economy, but in the short term a weaker dollar is what is allowing GDP growth to continue despite the housing turmoil due to increased export demand. Now, granted that a weak dollar hurts Americans purchasig power at home, but it also has created a situation where companies over the past ten years have brought their operations to the US. This has happened because the euro is more expensive than the dollar, but the euro still has less purchasing power in its home market than the dollar. The result is that it is less expensive to produce a product in the US for European companies. AIRBUS is building a plant in Mobile, AL, Mercedes-Benz builds most of its SUV's that it sells worldwide in Tuscaloosa, AL, and BMW is expanding its Spartanburg, SC plant adding 500 jobs while at the same time cutting 5000 jobs in Germany. It only makes sense to produce your products in the country that happens to be your largest single market. The euro has appreciated too much and it will become a burden on Europe in the future. OPEC countries are going to move to euros anyway becuase the US politically and economically is on the ethanol road. Why should they hold reserves in a currency of a country that won't be its customer 25 years from now? Mar 24 07:36 PM
    • U.S. Dollar Paradigm Shift Underway [view article]
      I believe that the US will be the recepient of large investments from trade partners especially the middle east. Dubai is the most recent example but will not be the last. They recognize that their oil is running out and that future economic growth and prosperity will demend on diversifying into industries like tourism and finance, which it is already doing. Dubai regards the US as its most important market. US petro dollars will come back to invest in our economy which will hopefully be used to develop and market the energy solutions for the world for the future. The US is largely responsible for the growth in many countries becuase of our companies investing in those markets. The next trend should come back to the US. Mar 24 06:42 PM
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