100 down in like 20 mins, back up 580 in 20 more. lol crazy stock players
Just a lot of uncertainty, and people are scared.
In USA and EU amount of debt the gov't have is mind boggling.
Both EU and USA have same problem, to raise more money they have 2 options.
1) Issue more bonds, but people no longer want to buy USA/EU debt since interest is too low. If they raise interest rates, then bonds will sell, but of course the stock market will suffer.
2) If unable to raise money by selling bonds, just print more money. In that case you have hyper inflation.
So basically they are fuked no matter what they do. Worse yet, china is barking at USA. Chinese finance minister (or what ever the fuk he is called) is saying US is a poor credit risk. China holds 1 trillion of US debt and probably 2-3 trillion in US stock market. All china needs to do is dump all their US treasury bills, and dump their 2-3 trillion in US stock market holdings. Since china has massive gold reserves (they have been buying up tons (literally) or gold) and gold holds its value in times of uncertainty. Once the market collapses. China then could use gold reserves to buy up US stocks for nothing literally.
Really fuking smart GWB and Obama to piss off someone who literally can destroy you economically. No wonder with idiots like GWB and Obama investors are uncertain of US economy.
These 2 graphs tell the story, 180 day chart of euro vs peso,dollar vs peso
Despite the fact that probably 1000-2000 people have been killed because of elections, investors are saying that the peso is safer then EU/USA.
Rumor has it, when the elections are over, the peso will climb 2-3 peso against the dollar. Historically this is usually true.
Worse yet for EU and USA, the chissmiss (gossip) on the street, is do not keep you savings in EU or $$$ you are safer in pesos.
In the past OFW always sent $$$ back in EU or $$$, and they would save then in EU or $$$ accounts.
An US $$$ account here pays out 3% (interest has always been high in asia), despite that according to my bank manager, OFW are selling thier dollars and buying pesos. Each of them might not have that much $$$ but when u take 10 million of them ......
If USA is not longer the global currency, and EU does not become the new global currency (just like 70+ years ago when US dollar replaced british pound). USA will become a minor financial player just like britain did 70+ years ago.
Fuking scarey.
