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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (237295)	1/31/2010 11:12:50 AM
From: TH	Read Replies (3) \| Respond to of 306849

bc, Of course they will not follow through. Right now it is just talk and there is strong opposition. In our modern game, talk is enough to move markets. The message is that Spain, at a much higher percentage of the EU GDP than Greece, is addressing the concern. As for realizing an actual result, we both know that they will keep right on spending. Same as the USA. If the assumption is that they are all going to keep on spending (and they are), then the only variable is who talks more <g> I jest, but then again, maybe not. I don't know what the market will do or how it will impact Spain. In the battle of words, I would expect the Euro to catch a bid. For the past six months I've believed that a deal was brokered with the ECB to keep quiet and let the Dollar fall. Now, the arrangement is reversed. This is the brilliance of our central bankers. Men who in most cases have never run a business and thus do not have to live with the impact of wild fluctuations in exchange rates. I can tell you that for exports from Europe the past two or three years have been very difficult. We win an award for a program that starts in 24 months and by the time we start shipping every single percent of our margin has been vaporized by exchange. We buy futures, but futures are losing game. The only pay if you pick exactly the correct amount of required exchange protection. If they move against you, the cost of the protection is lost. If you do not buy enough, you are exposed. If you buy too much, you've lost again. It is maddening and my next job will be based on Dollars only, just to eliminate this variable from my professional life. Currency should not be moving like it has for the past few years. Ben and company are only enriching the traders playing the volitility on rates. The people do the the actual work and make things have to clean up the mess. It is just one more way for them to game a slice from those who actually produce something and employee people. Do I sound pissed yet? Try living with a bonus structure tied to profit, then increase sales 100% plus, and discover we have no bonus pool because exchange consumed every bit of margin. GT TH