Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (72356)	2/5/2010 7:03:12 PM
From: Haim R. Branisteanu	Respond to of 74559

German Fin Min:Market Moves Exaggerated But Must Be Taken Seriously IQALUIT, Nunavut (Dow Jones)--Current moves on stock and bond markets are exaggerated but must be taken seriously, German Finance Minister Wolfgang Schaeuble said Friday, commenting on concerns about deficit problems in the euro zone that have hit markets in recent days. Speaking to reporters ahead of the two-day gathering of Group of Seven finance ministers and central bank governors in the Canadian Arctic, Schaeuble said that budget-deficit problems in Greece and Portugal likely would be discussed on the sidelines here. But he stressed that budget problems "aren't only in Europe," and that the euro-zone common currency is stable and it "will remain stable." Schaeuble also said that Greece must implement the tough measures requested by the European Commission. Greece now has to pay a high price for a previous loose budget policy, he said, and it can't be spared from measures to reduce its debt level. Greece had an estimated budget deficit of 12.7% of GDP last year, four times the 3% threshold set under European Union budget rules. It has pledged to reduce its budget deficit by four percentage points of GDP this year, and meet EU's 3% threshold by 2012. -By Andrea Thomas, Dow Jones Newswires, 867-222-2024 andrea.thomas@dowjones.com

To: TobagoJack who wrote (72356)	2/6/2010 7:04:56 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 74559

TJ, next week the US is auctioning their worthless debenture at well above fair value - the US needs a strong USD so the participants can hedge their purchases of Treasury notes. The comments of Triche and German Finance minister is clarifying it all - they revolt at the fact that the US with a over 10% of the GDP budget shortfall is capable to raise at below real inflation money to finance this deficit, for the mere reason of market manipulation. There are several states in the US with GDP far bigger than the PIIGS who are able to issue Munis at very low rates - this irks the Europeans who in turn are buying the debt issued by Greece, Portugal Spain etc. A high interest on debt in a non inflationary environment makes the issuance very costly. I presume that the market is not controlled only by US firms and the situation is temporary