How close were we to a credit disaster last week?

I was surprised by last week’s announcement by the major central banks to pump liquidity into the global financial system so I spent a fair bit of time on the weekend researching to find out the reason behind this unexpected move.  While it is common knowledge that European banks were experiencing an onset of a [...]

Parity Party over?

A few interesting developments have occurred on the currency front in the past couple of weeks so today I thought I would provide a quick update on what has been happening to the Aussie and US dollar. On November 3, right after the confirmation of QE2 by the US Fed, the Aussie dollar popped convincingly [...]

Cup Day for the A$

Today is Melbourne Cup day and sometime this afternoon most of us will most likely make or lose a small sum of money betting on the race that stops the nation every first Tuesday in November. A much bigger sweepstakes is in play in the Forex market. If the RBA announces an interest rate rise, [...]

QE2 + Foreclosure Crisis = 0?

Two hot topics – QE2 and the US foreclosure crisis currently dominate the financial headlines but nobody except one blogger (unfortunately I cannot find the original article to credit this person properly) seems to have connected the dots on these two important events. The first topic is about the impending implementation of a second round [...]

Don’t forget to look at the bigger picture

With the Aussie dollar making new highs everyday, the action is definitely in the currency markets. There appears to be a global currency war as countries try to weaken their own currencies to make their exports more attractive. As currency is the current hot topic, I thought I would do an updated post on the [...]

Flight to safety starting

In the last few days, the only “green” on my watchlist of Australian stocks were those of defensive stocks like utilities and consumer staples while the mining and banking stocks tumbled. Telstra, which was so unloved in the past months is finally making a strong comeback. For those public super funds who have to maintain [...]

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