George Osborne – UK will help Ireland through debt crisis

http://www.guardian.co.uk/business/2010/no...and-debt-crisis





This post has been edited by SKY 1809: Nov 17 2010, 06:42 PM

Hahahaha, good one.

But in truth, hearing this kind stuff, really making ordinary people sick.
QE only make rich become richer, because it inflates asset prices, and especially good for people running business, owning assets including stocks.
While poor still poor, or even more poor due to inflation on daily goods they purchased.

Where is the financial reform promised?

This is only partially true. Looking at the bright side, QE will make employers hire new employees as a result of the inflation, cash sitting in the hand of the companies will be utilized instead of deteriorated, just to name a few.

haha Dali is fast! he already posted the video yesterday..
actually i got the link from the first comment found here : http://www.cnbc.com/id/40218698

~i didnt know Fed buys T-bills from GS... really
~true enough, 2T printing failed to created jobs @ a satisfactory rate... will 600B change anything ?
~the 2T did create inflation, ask any average American CPI numbers can easily be manipulated by using different method to calculate..

UK's public finances are in near catastrophic state and they will want to help ireland?


seriously the situation on the ground here isn't that rosy.

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Added on November 17, 2010, 9:34 pmcurrent portfolio haha

This post has been edited by teehk_tee: Nov 17 2010, 09:34 PM

I think it depends. Actually, the US corporation do not need so much cash, they have already have a lot of cash. Perhaps, during the 70s,80s and the 90s, such monetary stimulus may work because money normally stays in US as it is still the best place to put your money. Now, the global financial markets have become so integrated and at the same time, there are more choices for money to flow to, especially emerging markets. So, monetary expansion in US may cause capital inflow into Asia and LATAM. It creates asset bubbles in places like China, Malaysia, Brazil and etc rather than helping the US economy as the money actually do not stay and work there.

I feel that a fiscal stimulus in US actually make more sense than a monetary ones. A fiscal stimulus, the stimulus will be more targeted. At the same time, since US govt is taxing, part of the money spent on fiscal stimulus actually will flow back to them. Assume a tax rate of 20% (the actual one should be much higher), a 600bil stimulus, 120 bil will actually go back to the govt. The stimulus is also more targeted, as in, it will force the money to be spent in US rather than flowing to China and Brazil. But, the current political environment in US makes it impossible for a fiscal stimulus.

On a side note,as for QE2, I think retail investor like us, we need to be careful. We can't use the same trajectory of the previous QE and expect a huge run up in stock price. In QE1, the world is in fear, so, no body actually dare to put money into risky assets like equities despite the talks of a QE. So, the post QE1 announcement stock run up drift is much greater. But, QE2, the market is in a much more stable condition, the post announcement stock run up drift would not be that substantial, cause, it has already been priced in to a certain extend. So, please don't base your investment thesis on QE2 only, a lot of stuff has actually been priced in. Malaysia are seeing signs of hot money inflow even before the QE2 announcement if you look at our MGS yield. So, the announcement on QE2 actually may not provide enough boast to the stock market. As usual, invest with good fundamentals company. Even if you are doing TA, people like Alex Lu also look at some fundamentals to protect them in case the company have good TA prospect and bad FA prospect.

This post has been edited by the snowball: Nov 17 2010, 10:47 PM

In fact, Bloomberg just had a report accounting the corporations actually refinance their debts and spend the proceeds in emerging market.

Thanks for your reply I appreciate your complimentary effort.

Source: http://www.bloomberg.com/news/2010-11-17/b...tside-u-s-.html

Yup. Uncle Ben is fighting a losing battle. Money flood US, US company use money to invest abroad. But, those republicans are blocking any serious effort in doing any fiscal stimulus, which is a more effective means. The same republicans also push for tax cut renewal for the rich. On one side, they say Obama spent too much, on the other side, they are trying to reduce government revenue. Actually, during a period in 1950-60s, US actually tax their super rich I think 90% for their income above a certain threshold. During that period, US still do fine. US has a great bull market too during that period. US is in a deep mess, their politicians are not helping.

Regardless of all the talks about China and Asia decoupling, China has still yet to show that their economy can actually function without exports. The current year and previous year GDP are buoyed by a lot of investment, which is basically borrowing your future growth for current use. So, US is still a very important place. For every 1 % decline in US, China need to grow 4% just for the Gross World Product to break even. We need a strong US economy, but, their politicians are destroying their country from within.

This post has been edited by the snowball: Nov 17 2010, 11:26 PM

Not necessary.
When corporate facing uncertainty about future, like what QE2 which send a lot of people in fear, instead building confidence, corporate may opt to extend existing employee to work more OT, more productivity, (there is no coincidence productivity has been on rising trend for sometimes), and reluctantly to hire new employee.

Corporate will hire when there is certainty factor with good prospect ahead.

QE is just flooding the economy with money. Whether people use the money for business expansion, hire new employee or not, is another story.

I much agreed with snowball said, fiscal stimulus is more effective than QE.
Current market is not short of money, current market is short of certainty and still feeling the fear of aftermath of 2008 financial crisis, as well as high fiscal deficit.

One side issue.
Look at what Warren Buffett said in today CNBC interview, he is paying 16-17% tax rate only, while gaining billlion in term of capital gain, while ordinary employee working under him are paying more as much as 30%.
Even some forumers here are paying higher tax rate than him.
Something are clearly not right in term of tax and financial system overall.
I applaud him for saying rich one should be taxed more. This could be one of solution of solving high fiscal deficit issue.

Try to deleted all history and cookies

Hey, it's working! Thanks!!

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Added on November 18, 2010, 2:07 amThanks! Learn a lot from you.

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Added on November 18, 2010, 2:10 amUS, Europe market seems stabilize right now...hope our opening tomorrow will be a good start...


This post has been edited by yok70: Nov 18 2010, 02:10 AM

DJ latest..........should be a slight negative downtrend for Bursa perhaps........just keep your fingers cross & hope for the best.



Dow Jones Composite Average 3,831.63 4:05PM EST Down 0.90 (0.02%)


Dow Jones Industrial Average 11,007.88 4:03PM EST Down 15.62 (0.14%)






Cheers to all.

ooh, more opportunities to accummulate.

happy trading everybody!

Gearing for polls

http://www.thestar.com.my/news/story.asp?f...2239&sec=nation

am I wrong in guessing that the Sarawak state elections should come first before GE?

Today is already Thursday, are you going to buy now or wait next week?

All in one .

i topped up Fajar/fajar-wa then still monitoring some in my watchlist cuz still need some confirmation

today queueing for DRBH cuz tuesday hit the golden fibo

Hong Leong Industries suspended until lunch time.

Proposing Rights issue, proposing distributing 75 MPI shares for every 300 HLI shares, Proposing acquisition and de-merger.


Announced proposals during public holiday yesterday. Normally I thought no announcements on public holidays.

This post has been edited by skiddtrader: Nov 18 2010, 09:02 AM

AYAM GORENG being goreng'ed down. No $$ to buy 1 barrel