IMF says ‘dollar overvalued,’ funding carry trade

November 8th, 2009 by stacyherbert

Stacy Summary:  All are speaking as one on the dollar.  (Sounds to me like they are encouraging more speculators to pile in on a ‘one way bet’.)

“There are indications that the U.S. dollar is now serving as the funding currency for carry trades,” the IMF said in a report published yesterday. “These trades may be contributing to upward pressure on the euro and some emerging-economy currencies.” While the dollar “has moved closer to medium-run equilibrium,” it is still “on the strong side.”

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65 responses so far ↓

  • Frank Hope
    Nov 8, 2009 at 10:39 pm

    Rise and shine! Check out the price of gold. It is well over 1100 this morning in Hong Kong. It touched 1105 at one point. I think I’m in love!

  • Frank Hope
    Nov 8, 2009 at 11:53 pm

    Tax the Traders! Make Wall Street Pay Its Share

    http://www.truthout.org/110709C

    Helen Brown gives Max an honorable mention in this article. She quotes him on Wall Street Bankers being “welfare queens”. Go Max!

  • Mongo
    Nov 9, 2009 at 12:17 am

    Sit back.. relax and enjoy the ride. Anybody read the great article over at ZH?

    “Here there be big numbers (Sic)”

    http://www.zerohedge.com/article/here-there-be-big-nymbers-sic

    Try deflating that derivative bubble!

    GREAT MOTHER!

  • Chalcedonite
    Nov 9, 2009 at 12:25 am

    @ Dustin
    Don’t sign on any line that puts you in debt longer than 6 years.

  • Sebastian
    Nov 9, 2009 at 12:37 am

    Off topic, but read this. It is hilarious! Lloyd Blankfein (Goldman Sachs) says “banks are doing God’s work”!
    So LB is actually Saint Lloyd Blankfein.

    I couldn’t find the original article but this story is referring to it. It is in Dutch though, maybe Google can translate it for you.

    http://www.nu.nl/economie/2118682/banken-doen-werk-van-god.html

  • Chalcedonite
    Nov 9, 2009 at 12:43 am

    Mother Earth posted this link:

    Goldman doing Gods work..

    http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6907681.ece

    The ecclesiastical church has been taken over by these thugs because they know they cannot get away with their crimes without dominating the ideas and beliefs of the people in order to turn them into debt slaves.

    Matthew 6:24
    No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.

  • Mongo
    Nov 9, 2009 at 12:46 am

    @Stacy, Here is one for you.. the Exter’s pyramid

    http://www.zerohedge.com/article/feds-nemesis-exters-2-quadrillion-liquidity

    I am beginning to question the purpose of living if I have to see the days of rebalancing that pyramid!

  • Bill Stewart
    Nov 9, 2009 at 12:50 am

    http://www.fcac-acfc.gc.ca/eng/industry/InfoNews/2006_03_InfoNews-2-eng.asp

    In today’s highly competitive marketplace, financial institutions are increasingly offering new, innovative products and services to meet their clients’ changing needs. With the introduction of these innovations comes an increased responsibility for ensuring that consumers have a clear understanding of how these products and services work, and what they cost.

    A survey conducted in 2003 by Statistics Canada found that 42.6 percent of consumers did not meet the minimum level of literacy required to read and understand documents. It is therefore imperative that disclosure documents be written in plain language, which is clear and concise, and which draws the reader’s attention to key information.

  • Mother earth
    Nov 9, 2009 at 1:10 am

    @Bill Stewart

    That should read:

    In our highly artificial competitive market, banks are always looking for a new and innovative ways to fk you out of your money. With the primary decision to entrust your money to a bank you passed the moron exam, marking yourself as an easy target on the financial shooting gallery. With all the money of other people and lots of time on their hands bankers will ensure you feel responsible for any losses incurred by following the advise of salesmen.

    The question asked was: What makes people accept loss. The answer : A sense of shame for ones own incompetence (bungling, inaptitude), attributing the loss to forces of nature (dog ate my CDS), experiencing the loss as a narrow escape (the cost of living at all), not realizing there was a loss (handing over gold for paper currency), Experiencing the loss as a victory (You bought the last Hammerpants for $1 mln, you are now an exclusive vip gold member of the Hammerclub!)

  • stacyherbert
    Nov 9, 2009 at 1:31 am

    @TheBlackSwan – I should have heeded your warning before reading that . . . ;)

  • frances snoot
    Nov 9, 2009 at 4:53 am

    James Tobin distanced himself from anti-globalists, declaring himself an advocate of ‘free trade’:
    http://www.globalpolicy.org/component/content/article/216-global-taxes/45918.html

    “But Tobin says in the interview, “I don’t have the slightest thing in common with these anti-globalization revolutionaries … I’m an economist and, like most economists, a backer of free trade. I also support the IMF, the WTO-all the things this movement is attacking.
    Indeed, Tobin says, “I believe the IMF should be strengthened and enlarged. Of course, it has made many mistakes … but, as is the case with the World Bank, it has too few means at its disposal to help above all poor and underdeveloped economies. The World Bank and the IMF are not part of some conspiracy called globalization.”"

  • frances snoot
    Nov 9, 2009 at 4:55 am

    @FrankHope:
    What suprasovereign agency would you declare disinterested enough to oversee a Tobin Tax?

  • Dustin
    Nov 9, 2009 at 11:09 am

    thanks all.

    debt is 45% of total morgage, remorgage as his fixed period has now ended and he can either continue paying variable or remorgage to a new fixed rate that is still 2% lower than previous fixed rate.

    if it looks like the BoE will at some point hike up interest rates then fixed seems to be a good plan, as there will be no surprises for the next 2 or 3 years

    least thats my thinking.

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