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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (24321)	10/18/2007 10:41:09 PM
From: carranza2	Read Replies (2) \| Respond to of 220167

You should think about BQI, Oilsands Quest, which has huge acreage in Saskatchewan adjacent to the Alberta oil sandbox. The geology seems to support a lot of bitumen on its lands It reports on its drilling program sometime this Fall. I am hoping for a bombshell.

To: TobagoJack who wrote (24321)	10/18/2007 11:57:43 PM
From: elmatador	Respond to of 220167

Japan and China lead flight from the dollar By Ambrose Evans-Pritchard, International Business Editor Last Updated: 12:26am BST 18/10/2007 Japan and China led a record withdrawl of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields The US requires $70bn a month in capital inflows to cover its current account deficit. ELMAT: THis is a contradiciton! the money is there to flow in, Europeans and Americans don;t want to seel it!! <<Government-controlled investment funds from China, Saudi Arabia and other countries will face pressure this week from finance ministers of the world's richest countries concerned about their lack of transparency and potential to gain stakes in companies linked to national security. The prodding is expected to begin Friday evening at an "outreach dinner" hosted by Treasury Secretary Henry Paulson, who invited representatives from eight nations with so-called sovereign wealth funds. "We look forward to a constructive discussion," Treasury Undersecretary David McCormick said in a statement. "We seek ... to emphasize our joint commitment to maintain openness to investment and to promote financial stability." These foreign funds have been around since the 1970s but have gotten much bigger in the last few years. They control an estimated $2.5 trillion in assets and play an expanding role in the global economy. Some experts say the funds -- whose holdings are projected to reach $12 trillion by 2015 -- could be used as instruments of foreign policy by the countries controlling them.>> businessweek.com Data from the US Treasury showed outflows of $163bn (£80bn) from all forms of US investments. "These numbers are absolutely stunning," said Marc Ostwald, an economist at Insinger de Beaufort. Asian investors dumped $52bn worth of US Treasury bonds alone, led by Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time since 1998 that foreigners have, on balance, sold Treasuries. Mr Ostwald warned that US bond yields could start to rise again unless the outflows reverse quickly. "Woe betide US Treasuries if inflation does not remain benign," he said. The release comes a day after the IMF warned that the dollar was still overvalued and likely to face "some depreciation in the medium term". The dollar's short-lived rally over recent days stopped abruptly on the data, increasing pressure on US Treasury Secretary Hank Paulson to shore up Washington's "strong dollar" rhetoric at the G7 summit this week. The Greenback has already fallen below parity against the Canadian Loonie for the first time since 1976 and has touched record lows against a global basket. It closed at $2.032 against the pound. David Woo, an analyst at Barclays Capital, said Washington was happy to see the dollar slide. "They don't care so long as the fall is not disorderly. They see it as a way of correcting the deficit. " he said. IMF raises spectre of UK house price correction Market forces: stay tuned to the markets Hedge funds target currency pegs Mr Woo said a chunk of the August outflows may have come from foreigners borrowing in the US during the liquidity crunch to meet needs in euros. "We think it may be a one-off," he said. The US requires $70bn a month in capital inflows to cover its current account deficit, but the key sources of finance are drying up one by one. BNP Paribas said America has relied on "hot money" from abroad to cover 25pc to 30pc of the US short-term credit and commercial paper market over the last two years. This flow is now in danger after the seizure in parts of the market over the summer and after the Federal Reserve's half point rate cut, which has shaved the US yield advantage over other countries. Ian Stannard, a Paribas currency analyst, said the data was "extremely negative" for the dollar. "It exceeds the worst fears. It is not just foreigners who are selling US assets. Americans are turning their back as well," he said. Central banks in Singapore, Korea, Taiwan, and Vietnam have all begun to cut purchases of US bonds, or signalled an intent to do so. In effect, they are giving up trying to hold down their currencies because the policy is starting to set off inflation. The Treasury data would have been even worse if it had not been for $60bn of inflows from hedge funds based in Britain and the Caymans, which needed to cover US positions at the height of the credit crunch.

To: TobagoJack who wrote (24321)	10/19/2007 1:35:52 AM
From: elmatador	Respond to of 220167

We have a financial crisis of horrendous proportion and no one wants to admit it. For admitting it, it will only make it worse. Banks’ Plan to Help May Itself Need Help Does the rescue plan for the credit markets need to be saved? nytimes.com Lessons from the credit crunch Oct 18th 2007 From The Economist print edition Central banks have worked miracles for 30 years. Don't count on that continuing economist.com Now there are "saviors" coming in to do the rescue. Huge money bags of the Sovereign funds. But look what is happening! They are getting together today to block the Sovereign funds that are coming to do the rescue by buying up everything in sight. Europe and the US wants to hold to the crown jewels, not to sell it out. In the other hand, the US alone, need $70bn a month. The Europeans know that the US need to cheapen the USD to export their way out of trouble. They foresee a dollar at 1.6 to the Euro and are panicking!