[firestarter]

Black Thursday here we come.

[Tanada]

$this->bbcode_second_pass_quote('firestarter', 'B')lack Thursday here we come.

[firestarter]

$this->bbcode_second_pass_quote('Tanada', '')$this->bbcode_second_pass_quote('firestarter', 'B')lack Thursday here we come.

[Mechler]

Go figure - last year when I was in Europe, the dollar moved to historically weak levels against the Euro.

Now, I just arrived in Japan today and the Yen is making huge moves after being weak all year. Of course, I haven't changed any currency yet, either .

Any guesses how low this is going?

[basil_hayden]

Dunno, how long will you be in Japan ?

[Pretorian]

Theoretically this, billions dollars that... I lost... A LOT, ALOT of money!!! FUCK!!!

[Roccland]

Good thing alpha chimp is looking to start another war...

if you are bewteen the age of 18-42 (M or F) you get a secure job.

Think this was not by design??

[wxman]

I still don't fully understand this either. I get the borrowing at low rates, yada yada. But we were below this value just last year, and much below before. Why is this time so much more catastrophic?
Yahoo Yen USD Chart

[Pretorian]

Within 3 weeks Australian dollar lost 2000 points against jap. yen.
Over a 1000 points of which in the last 3 days. There are were Giga-bucks , leveraged, worldwide in that trade, as well as usd/jpy, gbp/jpy and nzd/jpy. Now we are all left with jack shit. Isnt that catastrophic?

[Eli]

First off we are not talking about billions we are talking trillions.

The reason this is much worse this time is that everything is heading down the toilet. Everything across the board is going down and losing money, all the investments are starting to look shaky.

That means the investments globally that yen was put into are all simultaneously declining.


The other thing you must keep in mind is that the Yen was not only just invested it was leveraged. So you borrow 20 times the dollars with your yen. That means a small move in the value of the Yen and you get crushed.

At the level we are running at now this will start a vicious chain reaction, it really isn't theoretical it is a known economic imbalance that always corrects it self.

[jboogy]

Dow spiked to -218 at 12:00 after hovering at -170's all morning,NYSE implemented trading curbs immediately. Currency traders are trying to rip each others throats out. But don't worry everythings fine .

[firestarter]

Yen at 113.08 and falling like a stone!

[eastbay]

I have few questions for some of you economics geniuses.

It may seem simple, but to me it's a mystifying conundrum.

As the dollar drops in value relative to other currencies, doesn't that make the dollar worth less relative to commodities thereby creating inflation? If so, then why is dollar inflation so low? And, wouldn't this make holding one's money in cash an unwise move?

[jboogy]

Dollar inflation isn't low. It's very high.You would see commodity prices reflected in food prices and construction(housing prices)both of these are kept out of the CPI because of their "volatility",read steady upward movement.Inflation is high and has been,CPI is one of the most dishonest, manipulated numbers around.As housing values drop , don't be surprised to see the 'gubmint put housing back into the CPI mix.

[eastbay]

Well that may be true, but most of the things affecting us are about the same price as last year, or maybe even cheaper. I would expect some serious inflation kicking in affecting ALL areas of the economy and this simply isn't happening.

YEN: 112.40

[jboogy]

a gallon of milk is now 4.25, last year 3.25-gallon of gas 2.70 /2.90 now, last year 2.20/2.40, I bought my house in fl. for 160,000 about 4 years ago ,sold it for 229,000 2 years ago,health care ,higher education, local tax millage rates, these have all appreciated steadily over the last ;(whatever period of time you care to mention.) Chinese injection molded shit has maintained price stability.

[Jack]

$this->bbcode_second_pass_quote('eastbay', 'W')ell that may be true, but most of the things affecting us are about the same price as last year, or maybe even cheaper. I would expect some serious inflation kicking in affecting ALL areas of the economy and this simply isn't happening.

YEN: 112.40

[eastbay]

Yeah, I understand all that jd, except for milk which we don't use. I was talking about the past year or so. My house is worth the same. The new model of the car I bought in '04 still sells for about the same and there was no increase from '06. The school clothes we bought are about the same and gas is cheaper. All in all inflation has yet to kick in with any serious horsepower as far as our budget is concerned.

Maybe some people in some areas see inflation here and there, but we don't. Maybe the Northwest is somehow not feeling the effects.

[Niagara]

$this->bbcode_second_pass_quote('wxman', 'I') still don't fully understand this either. I get the borrowing at low rates, yada yada. But we were below this value just last year, and much below before. Why is this time so much more catastrophic?
Yahoo Yen USD Chart

[seahorse2]

The yen may be the same price as last year, but some people borrowed it as it was priced this year believing they could borrow the yen low and repay it with stronger dollars. That bets turned ugly now for them. So, it does matter.

No inflation? Go buy some milk, cheese, etc. In food and energy, there is inflation. You mention prices of cars and houses are STAGNATING, this is called stagflation, which is bad all the way around.