Skip to main content

Which way Obama wants to go !

Now it’s longtime that we are feeling that America is in financial trouble, but since then there are lot of window dressing going on both by private & by govt, we are pretty much aware of that . The true problem we may see when Obama administration is going to withdraw the stimulus packages. Then we can see the growth that is there is how much the real growth or it is the manipulations of figures. Companies still are going to insolvencies, situation of middle & lower class people are deteriorating day by day yet we see improvement in different economic data. Are those some things we can believe ?

Though USD is improving in figure that we may consider due to EURO factors or better to say European factors , but is there any chance of improving the value of US$ ?

Certainly not that because there is looming debt that is hovering around US economy how they are going to escape from that. In this matter we cannot forget the huge fiscal deficit that is contributing a large portion of this debt which is unpaid. China now the biggest creditor of USA crossing Japan another Asian giant. Like past administration is printing much currency papers to escape from this debt & fiscal deficit, but is not this process reducing the value of US $ ? If yes then God knows when we are going to see that !

Look like in this moment one industry must be very popular in America that is printing industry !  Go & print money as much as you can. Who cares about the future?

Actually there is no other way right now, if they stop printing money the economy will go into recession, which is more pain full as more people will be unemployed and related other effects.

So it is hard to say what will be the trigger points for markets but few may be the increase in interest rate, revaluation of their currency e.t.c.

NOTE :  Please see the disclaimer of this blog .


Popular posts from this blog

DAX forecast for coming week ended 15th March, 2013.

This week was very good for Dax, though it is getting resistance at 8100 range. Now it has a chance to test downside again. I think even if Dax tests lower levels, it has more chance to bounce back from around 7800 range and therefore it will again test upside.

On the other hand if it shows flat movements around 8000 range in initial days of the coming week then there is a chance that it may take a decisive call in later days. Considering the recent trends it has the chance to test higher levels may be around 8200 but that will be a very aggressive call after taking in to account the movement from last December. I will worry about the downside when Dax will be testing levels below 7600 ranges.
NOTE: Please see the disclaimer of this blog.

Fed’s rate hike Vs Sovereign rating up gradation

Financial market is very much worried about the rate hike in US, probably this is going to come in coming December. But I think that is not going to change much of the things. Even Fed hikes rate in December it will be not so much, because we are forgetting one thing that interest rate in US is around zero so even they hike rate by 0.25-50% basis points (at most) in this year that will not be enough cause for Dollars to change their locations around the world especially markets have already discounted this coming rate hike in US.

A new disaster is coming in EU banking sector, whom to blame, big Audit firms!

First I was thinking what should be the title of this posting? Will it be good if I write that big audit firms set the time for EU bank collapse! If someone is thinking that financial crisis is over then think twice because the coming EU banking crisis is no way less than 2008 financial crisis. The time bomb will explode at some point of time in future, the time has not yet set for it. In that tsunami, forget about the smaller if any major banks collapse then I will not be surprise.