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Another G20 love-in, the global recovery and China.

April 25th, 2010 · Greg Atkinson · 36 Comments

All hail to the G20 Finance Ministers and Central Bank Governors, for according to the communiqué from G20 meeting in Washington, they have saved the world from a financial crisis and will now lead us into a new era of growing global trade. Of course if the G20 actually functioned properly in the first place we would not be in the mess we are in now, but I guess they don’t talk about that much at the meeting.

The latest G20 meeting in Washington was another mutual back slapping exercise, where government bureaucrats and politicians gathered together to agree that they were legends and to issue the infamous G20 communiqué which true to form, was full of self praise.

Worst of all however is that the G20 communiqué is accepted by the mainstream media as fact and receives very little scrutiny. How often for example do you read articles where the policies of the G20 are seriously questioned?

So what did the G20 have to say about themselves this time? Well here are some highlights from the communiqué released on April 23.

Firstly the self praise:

” We, the G20 Finance Ministers and Central Bank Governors, met in Washington D.C. to ensure the global economic recovery and the transition to a strong, sustainable and balanced growth as well as
our agendas for the financial regulatory reform and international financial institutions remain on track.”

“The global recovery has progressed better than previously anticipated largely due to the G20’s unprecedented and concerted policy effort. However, it is proceeding at different speeds within and across regions, and unemployment is still high in many economies. We recognize that in such circumstances different policy responses are required”

So according to the G20 finance ministers and central bankers they have been largely responsible for recovery of the global economy because they are simply too clever for words.

Well if that is true, then I have few questions:

1. If finance ministers and central bankers are so competent then why didn’t they spot the financial crisis coming and take measures to prevent the global recession?

and;

2. Why didn’t they implement the financial regulatory reforms they are talking about now, before the crisis?

Apart from the self praise, the communiqué from the April G20 meeting is full of the usual clichés about the global economy and hardly worth talking about, but one passage that did catch my eye was this one:

“Our Framework for Strong, Sustainable and Balanced Growth for the global economy is a key mechanism through which we will continue to work together to address the challenges associated with achieving a durable recovery and our shared objectives.”

Shared objectives? Does anyone seriously believe that China and the U.S. have shared objectives that will lead to balanced growth? In fact I seriously doubt that the G20 have any significant shared objectives apart from keeping the G20 leaders in power, and trying to grab as much power as possible.

At present the global economy is slowly recovering, but the big spending policies of the G20 are going to cause problems for many member nations in years ahead.

So rather than lavish themselves with praise, perhaps the G20 meeting member’s could show a little more humility and acknowledge the fact that all they have really done so far is spend their way of of trouble. Maybe their policies have worked, but I reckon it is far too early to declare mission accomplished at this stage.

This leads me onto the subject of the Chinese economy, which after all is largely one of the reasons the global economy is growing again and the main reason Australia has so far, avoided a lengthy recession.

There are mainly two views of the Chinese economy doing the rounds at the moment. The first view is that basically the sky is the limit when it comes to the Chinese economy and that for the next few decades, China will see it’s economy grow by 5% or more per year and eventually replace the United States as the world’s number one economy.

The other view is that China’s economy is in a bubble, and that sooner or later the bubble will burst. At best the Chinese economy will have a few bad years and then start to recover, at worst China will spiral into a severe recession and will face years of economic contraction.

My own view is that there is no such thing as a miracle economy or an economy that will never have a recession. Therefore as I have mentioned quite a few times, I believe that the Chinese economy is overheated and at some point it will cool.

If that happens relatively soon then maybe the fallout will not be that severe in terms of the impact on the global economy, however I fear the impact on the Australian economy will be quite severe as I wrote back in January in: When the Chinese economy slows, Australia’s may tumble.

But at this stage the consensus view from the Government, Reserve Bank and the Treasury is that Australia has nothing to worry about because the Chinese economy will fuel a decades long commodities boom. (and hence the reason the Rudd Government seems confident enough to keep on spending)

Even most Australian economists and financial commentators seem to be hooked on the notion that all we basically need to do in Australia is control inflation and house prices.

Maybe they are right and I am simply being too cautious. Perhaps the Chinese economy will continue to surge ahead and has many years of strong and sustainable growth ahead of it.

For the time being I will remain cautious in regards to the outlook for the Chinese economy, commodities (expect oil), Australian stocks and gold.

But what do readers think? Is the Chinese economy overheating or simply in the midst of a decades long growth phrase? Has the G20 saved the day or simply spent a lot of money to artificially create growth? Is the Australian economy doing great or are we setting ourselves up for an almighty fall if the Chinese economy slows?

Over to you…..


36 responses so far ↓

  • 1 Ned S // Apr 27, 2010 at 4:27 pm

    “Does anyone seriously believe that China and the U.S. have shared objectives that will lead to balanced growth?” The mob that fix their currency to that of the mob that borrow in their own currency and do QE – Sounds to me like they each have their own best interests at heart too.

    Interesting article re the baskets that have been being kept honest (militarily anyway) making a few moves towards being able to keep the other baskets honest:

    http://www.theaustralian.com.au/news/beijing-bolsters-navy-with-eye-on-pacific/story-e6frg8yo-1225858536138

    ” … no such thing as a miracle economy or an economy that will never have a recession” – True, but as we saw with Japan, growth can go on for a very long time. At what point should we worry though – Not at all sure – But if someone was to mention to me that the land value of Tiananmen Square was getting up towards that of Los Angeles I’d start feeling a bit twitchy? 🙂

  • 2 Greg Atkinson // Apr 28, 2010 at 11:57 am

    Ned the relationship between China and the U.S is interesting to say the least. The Chinese lend the U.S. huge amounts of money so that basically U.S consumers can buy lots of Chinese imports.

    The U.S then complains about cheap imports from China, but keep on borrowing money from the Chinese anyway.

    But how long can this go on?

    I know the economic rise of China and Japan are often compared but personally I see them as being two very different situations. It could just be that China has already peaked?

  • 3 Anon // May 3, 2010 at 10:10 am

    Greg will be drooling at this article haha

    “Buffett Says Berkshire Would Weigh ‘Significant’ Japan Deal”

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aTq6r.fiJ3Fg&pos=6

    ” May 2 (Bloomberg) — Warren Buffett said he’d like Berkshire Hathaway Inc. to make a “significant” acquisition in Japan.

    No deal is on the horizon, Berkshire’s billionaire chairman and chief executive officer said today at a press conference in Omaha, Nebraska, a day after the company’s annual meeting of shareholders. He said an acquisition could come within five to 10 years, or five to 10 months. ”

    Might be time to start looking at taking big positions in Japan, next pullback? 😛 Buffet knows Japan is starting to get itself in order!

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 4 Anon // May 3, 2010 at 10:17 am

    http://www.economist.com/blogs/charlemagne/2010/05/eu_rescue_greece?source=features_box_main

    “Europe agrees a “shock and awe” bailout for Greece ”

    “Both Greece and Portugal are rather small, moreover. If the markets find good reasons to doubt the long-term sustainability of a much bigger economy, Spain, the cumulative bailout bill for other EU governments quickly reaches a very big number indeed (in Brussels, figures of a trillion euros or more are talked of in queasy tones). In the words of one Brussels official tonight: “the EU can’t afford Spain.””

    I smell blood.

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 5 Greg Atkinson // May 3, 2010 at 1:32 pm

    Anon I am a believer in the Japanese economy and that is one of the reasons I am up here in the land of the rising sun. As the economies across Asia grow then so will the Japanese economy.

    My view is that the Australian economic boom is close to ending whereas the Japanese economy will come out as one of the winners in a post GFC world. I doubt many people will agree with me, but that’s life 🙂

  • 6 Anon // May 3, 2010 at 1:40 pm

    Greg, as you know I have been very bullish Japan too.
    The only issue for me is trying to decode all the bloody Japanese company reports. I can get some translation but geez its abit messy!!
    I’m trying to find some english based analysts to give me some valuation reports. But alas I cant find much…the ADRs have currency issues so thats useless…
    I’m guessing you are fluent in Japanese Greg?

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 7 Greg Atkinson // May 3, 2010 at 10:11 pm

    Anon my Japanese is pretty poor so I generally stick to reading what I can get my hands on in English. I tend to be a “themes” sort of guy anyway so most company reports in any language have me nodding off after about page three 🙂

  • 8 Greg Atkinson // May 3, 2010 at 11:20 pm

    By the way, Marc Faber is really bearish on China now. Here is an article from Bloomberg that should worry people counting on the China boom continuing: China May `Crash’ in Next 9 to 12 Months, Faber Says

  • 9 Anon // May 4, 2010 at 3:13 am

    Thanks Greg, heres a passage i liked from old faber:

    “The Shanghai Composite Index has failed to regain its 2009 high while industrial commodities and shares of Australian resource exporters are acting “heavy,” Faber said.”

    Good assessment, the big mining guns look like they are in rollover mode (with obvious severe counter-trend rallies) in between.
    Technically it doesn;t really matter…they are overpriced…its weird how markets can react slowly to big news. The miners tax is huge yet the markets haven’t caught on completely. If they did BHP would not be worth anywhere near this level. For BHP ~$39 appears to have held (at least temporarily).

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 10 Greg Atkinson // May 4, 2010 at 10:09 am

    What many people seem to miss is that the ABARE reports and trade statistics only show that our mining exports have recovered after slumping but are not near the highs of 2007-2008.

    Why did our mining exports hold up well? Because China, Japan & South Korea for example spent a fortune supporting their economies. But that spending will be wound back.

    Like I have mentioned a few times, the Baltic Dry Index does not seem to suggest there is a resources boom in play or that world trade is surging back to boom levels. So where is all the optimism in Oz coming from? Are people forgetting that the government is borrowing to support GDP and that underlying economic growth is actually weak?

  • 11 Anon // May 4, 2010 at 12:31 pm

    “the Baltic Dry Index does not seem to suggest there is a resources boom in play”

    Greg this indicator is ok, but I think you mentioned there was an oversupply of ships (http://www.etaiwannews.com/etn/news_content.php?id=1197464&lang=eng_news). So wouldn’t it be difficult to know if there was true resources demand there? i.e. over supply of ships leads to subdued price rises for shipping etc.
    Have to also be careful because this is a very popular leading indicator. But not really sure what else we have out there. The LME stockpiles, as a negatively correlated indicator, has not currently been very effective either.

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 12 Greg Atkinson // May 4, 2010 at 5:46 pm

    Anon, there was indeed an oversupply of ships but some of this has been worked out of the system as vessels either are laid up or scrapped. So my reading of the tea leaves leads me to believe that global trade levels are still fairly weak and that commodities volumes are not quite as strong as the mainstream media in Australia suggests.

    It will take a while however for the BDI to settle down as you mention above, so perhaps it is not quite as reliable as an economic indicator as it was before the GFC mess.

  • 13 Anon // May 4, 2010 at 6:46 pm

    Well outside of the BDI your arguments and research about commodities has been fairly exhaustive – so I think your arguments are valid.

    The dax is just awful currently. I hope readers of your site have avoided most of the damage. All of us, to some degree, have been harping on about this for yonks.
    Heres some average Expected total returns for the American and OZ equities markets*

    United States
    May 2.19%
    June .69%
    July 1.69%
    Aug .98%
    Sept -1%
    Oct -.81%

    Australia
    May 1.36%
    June -.68%
    July 3.15%
    Aug 1.38%
    Sept .12%
    Oct -2.26%%
    Nov -1.19%

    Although, given we had very somber May and September periods last year, these averages might be alittle useless as a guide.

    *Not the most up to date data.

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 14 Anon // May 4, 2010 at 7:00 pm

    Heres some average Expected EXCESS
    returns for the American and OZ equities markets*

    United States
    May 1.03%
    June -.47%
    July .53%
    Aug -.18%
    Sept -2.16%
    Oct -1.97%
    Nov -.39%

    Australia
    May .17%
    June -1.87%
    July 1.96%
    Aug .19%
    Sept -1.07%
    Oct -3.45%
    Nov -2.38%

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 15 Anon // May 5, 2010 at 7:07 am

    Post a couple of days ago:

    ““Both Greece and Portugal are rather small, moreover. If the markets find good reasons to doubt the long-term sustainability of a much bigger economy, Spain, the cumulative bailout bill for other EU governments quickly reaches a very big number indeed (in Brussels, figures of a trillion euros or more are talked of in queasy tones). In the words of one Brussels official tonight: “the EU can’t afford Spain.”””

    I smell blood.
    ——————–

    EURO looks in trouble to me.
    In June Spanish debt falls due.
    And Europe cannot afford to bailout Spain aswell.

    225 billion euros in Spanish debt (almost half held by foreigners), alot more than what Greece needed (~146 billion).

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 16 Greg Atkinson // May 5, 2010 at 8:48 am

    Yes Anon it is all getting very nasty, but the concerns over debt have been hanging around for a while, it just seems many investors have put those concerns aside.

    Actually back in November last year in response to an article I wrote called: The forgotten economic giant: The European Union a person made a comment that we should all be very worried about debt in the EU…he/she turned out to be right on the money!

    Also let’s not forget what is happening in China as reported Bloomberg today:

    “The China purchasing managers’ index released by HSBC Holdings Plc and Markit Economics declined to 55.4 from 57 in March, spurring concern demand will slow in the world’s fastest- growing major economy.”

    Things could get nasty for the Australian economy in the second half of the year.

  • 17 Anon // May 5, 2010 at 9:06 am

    Geez that Chinese data is poor.

    It is what it is, until its not 😉

    This market is very difficult to navigate…if you buy too early, say in June (in lieu of the seasonal July rally), you could get burnt heavily in Sept – Nov. I guess this is why you sell in May and go away ;).

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 18 Anon // May 5, 2010 at 10:10 pm

    Riots now in Greece – this is just a mess. People killed 🙁

  • 19 Greg Atkinson // May 8, 2010 at 8:03 am

    Isn’t it amazing that just weeks after the G-20 love-in the world is suddenly worried about debt!? People like myself who questioned the effectiveness of big spending economic stimulus plans and the actions of the G-20 were in the minority, but now we seem to have more friends.

    I wonder if the G-20 finance ministers and central bankers will still be praising themselves when their nations are struggling to pay off debt and they need to raise taxes.

  • 20 Anon // May 8, 2010 at 8:21 am

    “Isn’t it amazing that just weeks after the G-20 love-in the world is suddenly worried about debt!? ”

    Its almost like purposeful denial. Keep denying, hoping everything is ok, until it isn’t.
    Look at the Bullish Percent Index Greg — Just a slight fall!
    http://stockcharts.com/charts/gallery.html?$BPSPX

    Not advice, just gambling and speculation. Always see a financial advisor for decisions etc.

  • 21 Greg Atkinson // May 8, 2010 at 9:16 am

    Oh look, Australia made the list…sadly it is the list of the world biggest debtor nations. We are now joining our EU friends so if I were Rudd & Swan, I would keep my mouth shut and stop talking about how well I have have managed the economy!

    The World’s Biggest Debtor Nations (No 18: Australia)

  • 22 Anon // May 8, 2010 at 10:26 am

    Geezus we are only 1 behind Italy!! and 2 behind Greece!! Good find Greg.
    PIIGAS…the occer version?

    16. Greece – 170.5%

    External debt (as % of GDP): 170.5%

    Gross external debt: $581.68 billion
    2009 GDP (est): $341 billion

    17. Italy – 147.4%

    External debt (as % of GDP): 147.4%

    Gross external debt: $2.594 trillion (2009 Q3)
    2009 GDP (est): $1.76 trillion

    18. Australia – 124.3%

    External debt (as % of GDP): 124.3%

    Gross external debt: $1.025 trillion (2009 Q2)
    2009 GDP (est): $824.3 billion

    Not advice, just chtichat. Always see a financial advisor for decisions etc.

  • 23 Greg Atkinson // May 8, 2010 at 10:39 am

    Anon shocking isn’t it? The last Government in Oz paid down Government debt and put aside a small fortune for a rainy day, now Rudd and Co have blown the lot and have sent the nation heavily into debt!

    I think this classic clip from the Yardbirds sums up my feeling about Rudd & Swan as economic managers 🙂

  • 24 Anon // May 8, 2010 at 10:51 am

    Well if our banking system implodes I think we’ll be up there with other screwed up governments. Like you said our rainy day money has been blown…almost like an 18 year old getting a credit card for the first time lol.

    LOL @ song. Couldn’t have said it better ha.

    Hey I’m reading this awesum book about Investors Psychology…good read imo.

    “Inside the Investor’s Brain: The Power of Mind Over Money”

    “Inside the Investor’s Brain provides readers with specific techniques for understanding their financial psychology, so that they can improve their own performance and learn how to outsmart other investors. Chapter by chapter, author Richard Peterson addresses various mental traps and how they play a role in investing. Through examples, such as a gambling experiment with playing cards, the author shows readers how being aware of the subconscious can separate the smart investors from the average ones. This book also contains descriptions of the work of neuroscientists, financial practitioners, and psychologists, offering an expert’s view into the mind of the market. Innovative and accessible, Inside the Investor’s Brain gives investors the tools they need to better understand how emotions and mental biases affect the way they manage money and react to market moves.”

    http://www.amazon.com/exec/obidos/ASIN/0470067373/thebigpictu09-20

    Not advice, just chtichat. Always see a financial advisor for decisions etc.

  • 25 Ned S // May 8, 2010 at 1:02 pm

    First real challenge to the Euro (and the EU):

    http://www.google.com/hostednews/afp/article/ALeqM5i7_9NKf300GBrXDAT8jkLRzadAnw

    With the basic response being to set up a “stabilisation” fund to fight the nasty bond markets. Does that mean they are going to print the money or tell tax payers across the union they get to pony up – Or something else?

    Haven’t looked Greg, but I’m assuming Japan tops that list you give with 200% + ? So why not hammer them? I gather the storey (to date anyway) has been that Japanese savers fund their own debt internally. While the Europeans are made especially vulnerable by the lack of any real United we stand, Divided we fall ethos maybe? As well as the debt which is the basic issue of course.

    Kind of begs the question of why the heck would ANY external party want to fund another country’s government and welfare schemes. As opposed to investing in their private enterprises. (Which the country taxes – Preferably at reasonable please Kev?) To let them fund the government they choose and the benefits that government bribes their voters with themselves maybe? Puts the whole model for funding sovereign debt under a spotlight to my way of thinking.

    Italy – Yeh; Remember the Greeks saying a while back: The Italians are cheats TOO!!! – Wouldn’t be too surprised if the Europeans reckon a few of their member nations’ books wouldn’t stand an “honesty” audit. But then most country’s books wouldn’t these days I guess.

    “implied volatility of the VIX is currently at 133” – The punters ARE twitchy! Although Greeks and gift giving scenarios have always made for an iffy combination I gather? 🙂

  • 26 Ned S // May 8, 2010 at 7:03 pm

    Got yet another bill to pay so went to the CBA website. Whoever puts that mob’s scrolling banner ads together has NO sense of irony. They said (in order):

    * Whatever you want, get there quicker

    * Determined to fix your problems quickly because we know you have more important things to get back to

    * Australian Red Cross continues to give hope to those in times of crisis

    Yes, all very droll … Thank you CBA. Maybe Kev and Swanny can come work for you as night cleaners after the election? (We continue to hope!)

    Hey Greg, I’ve never bought a share in me life as I’ve said, but as a purely hypothetical, if a bloke did think oil company stocks could have anything going for them, do you have any particular preferences and/or aversions in that regard at this time?

  • 27 Greg Atkinson // May 8, 2010 at 7:32 pm

    Ned, Japan is not on the list as they are largely a creditor nation. Japanese government debt is basically internal debt, i.e. the Government owes the people of Japan the money. This is what most people don’t realise. So the Government owes a lot of money, but they get loans at very low interest rates from a nation of savers. I guess I have even lent the Japanese government money in a roundabout way.

    Having said that, the Japanese Government really do need to get their spending under control!

    As for the Euro, how times have changed. I recall not that long ago people were asking to get paid in Euro instead of U.S dollars because it was seen as more stable!

    As for stocks, I am not a person to recommend anything because I don’t feel I have a good enough track record. But I have mentioned before that I have an interest in AWE shares and I still like them. I wrote a bit about them a while back in the Stock Watch area. See: Stockwatch: Australian Worldwide Exploration (AWE)

  • 28 Ned S // May 8, 2010 at 7:48 pm

    “people were asking to get paid in Euro instead of U.S dollars because it was seen as more stable” – Russians went through that from maybe 2003 onwards Greg? And the Russkies recent history attunes them to having heightened awareness levels to currencies that have any inherent instabilities.

    Thanks for pointing me to your AWE link. I’ll have a look.

  • 29 Ned S // May 8, 2010 at 8:00 pm

    Oh, regarding Japan – And some comments we see about it being A bug waiting for a windscreen to appear – Yes, the bit of reading I did indicated it wasn’t quite that straight forward either. I might have messed up on the detail a bit I guess – As clarified by yourself – Ta. But, when it comes right down to it, I guess it’s a case of whether a country can afford, and can reasonably be expected to continue to afford, it’s peccadillos perhaps?

  • 30 Greg Atkinson // May 8, 2010 at 10:14 pm

    Japan is complicated Ned 🙂 A lot of western analysts and journos don’t quite appreciate why so much money is spent on infrastructure. I tried to explain this a while back in this blog: http://www.shareswatch.com.au/blog/japan/bridges-to-somewhere-infrastructure-spending-in-japan/ and maybe this will help you understand where the money has gone.

    Also remember that in 1995 there was a major earthquake in Kobe which killed thousands and resulted widespread damage that required an enormous amount of Government funds to assist with the rebuilding efforts.

    Of course money has been wasted, but not quite as much as many people make out and if you ever get up to Japan you will see that generally speaking, the infrastructure is the best in the world. (not easy to do when you keep getting hit by earthquakes, typhoons and the odd tsunami)

    The only major concern I have is with the level of Government spending. The recently elected mob have been trying to get that under control but the Japanese P.M (Hatoyama) seems to have the same ability to talk big and do nothing much like our P.M 🙂

  • 31 Ned S // May 8, 2010 at 11:29 pm

    “a major earthquake in Kobe which killed thousands” … Been a few of them around the world Greg – All depends how expendable governments figure their citizens are maybe – And if they can back their stated convictions with some cash.

    “Of course money has been wasted” – Pick ya country and tell ya storey hey??? 🙂 One of those times when being able to tell Mine’s bigger than your’s yarns just mightn’t turn out to be something to gloat about! 🙂 🙂 🙂

    “seems to have the same ability to talk big and do nothing much like our P.M” – Must check Mr Hatoyama out some more. If your assessmment is correct, I might have to put Japan on my list of countries to worry about in a year or three.

    I hold governments to account in this mess Greg. Despite all their ducking and weaving and dodging to date. If they aren’t at least prepared to say to bond holders Here, we’ll give you 5% with no risk, then they need to figure out how they can – Unless they really do want us to all form the opinion that their money has no long or even medium term value at all. (Given that they love inflation.)

  • 32 Greg Atkinson // May 9, 2010 at 8:38 am

    Ned I also hold the public to account. We are the twits that keep voting in dud politicians. But we have discussed that before and I don’t think we will see real political reform in Australia for quite some time.

    Maybe the Lib-Dems in the U.K will shake things up if they get a power sharing deal going?

    As for Hatoyama-san, he is doing a major backflip over the relocation of U.S forces in Okinawa at the moment and is coping flak from all sides. See: http://search.japantimes.co.jp/cgi-bin/nn20100508a1.html

  • 33 Anon // May 9, 2010 at 3:35 pm

    What do you rkn about this EU fund to defend the Euro?

    “EU Finance Ministers Race to Ready Euro Fund Before Asia Opens”

    http://www.bloomberg.com/apps/news?pid=20601087&sid=a46uNVxfKbAw&pos=1

    Haven’t read much on this but my first impression is that it smacks of desperation. Is there something much bigger that we don’t know about? Surely the Euro has to rally at least for a few days one would suspect?

    ““implied volatility of the VIX is currently at 133? – The punters ARE twitchy! Although Greeks and gift giving scenarios have always made for an iffy combination I gather?”

    Seems that way Ned. Clearly it shows the punters are in panic mode, this is nowhere as bad as the 2008 debacle.

    Not advice, just chtichat. Always see a financial advisor for decisions etc.

  • 34 Anon // May 9, 2010 at 3:55 pm

    I should also say that I closed my Euro shorts on Friday and that I am looking to reshort on any significant strength or if support breaks around 1.24 (EUR/USD).

    Not advice, just chtichat. Always see a financial advisor for decisions etc.

  • 35 Anon // May 9, 2010 at 4:38 pm

    Heres some oil price predictions I stumbled upon:

    $66 target.

    http://1.bp.blogspot.com/_pCDyiFUv9XU/S-QhDFtWe-I/AAAAAAAAJnw/zb1yA8CLKkI/s1600/Oil+66.png

    Not advice, just chtichat. Always see a financial advisor for decisions etc.

  • 36 Ned S // Jun 2, 2010 at 12:12 pm

    Mr Hatoyama’s gone I see.

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