ShareJunction - Stock Forum Messages %%%:

Back

First < Newer 44041-44060 of 69565 Older> Last

Latest Forum Topics / Straits Times Index

Post Reply

STI to cross 3000 boosted by long-term investors

iPunter
Supreme

14-Jun-2010 11:06

iPunter About Contact Quote this Post!

x 0
x 0

Alert Admin

I agree with that... :)

Useful To Me Not Useful To Me

Isolator
Supreme

14-Jun-2010 11:03

Isolator About Contact Quote this Post! Mood:

Yells: "STI is hard landing to below 2000..."

x 0
x 0

Alert Admin

I thought I heard the worst is over from Solo? Now double dip is possible... Anyway, they are hedge fund, every comment is to their advantage....right? Smiley

Useful To Me Not Useful To Me

iPunter
Supreme

14-Jun-2010 11:02

iPunter About Contact Quote this Post!

x 0
x 0

Alert Admin

But a bull (or mini-bull) market thrives on bad news...

Thus, probably there's money to be made before things can become worse... Smiley

Useful To Me Not Useful To Me

Jackpot2010
Master

14-Jun-2010 10:54

Jackpot2010 About Contact Quote this Post!

x 0
x 0

Alert Admin

So many negative views - George Soros also turns negative, says present economic situation mirrored the Great Depression 1933 & present crisis has entered Act II.

fruitty ( Date: 14-Jun-2010 01:33) Posted:

Jim Rogers, Robert Pretcher, Marc Faber and Nouriel Roubini are all predicting a big bear ahead of the stock market. Should we all be careful and perhaps even stop buying shares for now?

Useful To Me Not Useful To Me

alooloo
Veteran

14-Jun-2010 10:44

alooloo About Contact Quote this Post! Style: Fundamental Mood:

Yells: "I am not young enough to know everything. "

x 0
x 0

Alert Admin

i think it is earlier... right after Singapore election?

ozone2002 ( Date: 14-Jun-2010 10:13) Posted:

i predict US market to crash by end 2010...

but in order to do that it must cheong..............

SO CHIONG CHIONG CHIONG.... that's how crashes come abt..

read ur history books..

Useful To Me Not Useful To Me

iPunter
Supreme

14-Jun-2010 10:15

iPunter About Contact Quote this Post!

x 0
x 0

Alert Admin

I would say It is gutsily safer (for your money)

to agree with that than to disagree... Smiley

Useful To Me Not Useful To Me

ozone2002
Supreme

14-Jun-2010 10:13

ozone2002 About Contact Quote this Post! Style: Technical

x 0
x 0

Alert Admin

i predict US market to crash by end 2010...

but in order to do that it must cheong..............

SO CHIONG CHIONG CHIONG.... that's how crashes come abt..

read ur history books..

Useful To Me Not Useful To Me

jasonfaxingliu
Senior

14-Jun-2010 09:30

jasonfaxingliu About Contact Quote this Post!

x 0
x 0

Alert Admin

Yes, US iss different whereby those exporting countries want to continue to export to buy up their IOU... so US can continue to print money and those countries continue to receive IOU. The problem is when IOU got too big, problem will be those who hoild the IOU

Useful To Me Not Useful To Me

iPunter
Supreme

14-Jun-2010 09:26

iPunter About Contact Quote this Post!

x 0
x 0

Alert Admin

Today OSIM did very well...

It "cheonged" 3% so far... nice... Smiley

Useful To Me Not Useful To Me

alooloo
Veteran

14-Jun-2010 09:22

alooloo About Contact Quote this Post! Style: Fundamental Mood:

Yells: "I am not young enough to know everything. "

x 0
x 0

Alert Admin

Impossible for US....

Most of the US debt is in US dollar. They can fulfill any debt by just printing more money...

It is totally different scenario for Greece vs US... in term of debt...

alexchia01 ( Date: 13-Jun-2010 21:36) Posted:

There are speculations that US will be like Greece in 2 to 3 years time.

When that times come, we'll seem another market tumble.

teeth53 ( Date: 13-Jun-2010 00:06) Posted:

http://sg.news.yahoo.com/afp/20100603/tts-us-economy-finance-debt-c1b2fc3.html

WASHINGTON (AFP) - – US debt has reached 13 trillion dollars for the first time in history, the Treasury Department has said, stoking a political furor over government spending.

teeth53 thot - This is for U.S. Where almost every states and countries used as global reference. So majorities rich nations will want to see that US dollar is not and will not be dropping as fast as everyone like. Even if it rise it debt by another 2-3 time, it still not a big problem.

The governments can just create money or 'print money' via a few key strokes on the computer. 'It can always meet any bill. Do I owe you $1 trillion, ok, I'll just go to the Reserve Bank and say, add $1 trillion to this person's bank account. I don't have to default. Anybody comes to me with a legitimate claim, OK, I can meet that.' The government is never going to run out of money. (This can't be the case if governments borrow in foreign currencies.)

Useful To Me Not Useful To Me

bishan22
Elite

14-Jun-2010 08:06

bishan22 About Contact Quote this Post!

x 0
x 0

Alert Admin

The best investment is not to buy stock and not to sell stock. Life will still go on. Smiley

Useful To Me Not Useful To Me

fruitty
Senior

14-Jun-2010 01:33

fruitty About Contact Quote this Post!

x 0
x 0

Alert Admin

Jim Rogers, Robert Pretcher, Marc Faber and Nouriel Roubini are all predicting a big bear ahead of the stock market. Should we all be careful and perhaps even stop buying shares for now?

Useful To Me Not Useful To Me

E-war
Veteran

13-Jun-2010 23:48

E-war About Contact Quote this Post!

x 0
x 0

Alert Admin

As sure as night n day, there will be mkt cycles, with so many possible causes that hard to even guess. Just make sure be ready for it to benefit.

Useful To Me Not Useful To Me

alexchia01
Elite

13-Jun-2010 21:36

alexchia01 About Contact Quote this Post! Style: Combined Mood:

Yells: "Catch The Stars And Ride With Them"

x 0
x 1

Alert Admin

There are speculations that US will be like Greece in 2 to 3 years time.

When that times come, we'll seem another market tumble.

teeth53 ( Date: 13-Jun-2010 00:06) Posted:

Useful To Me Not Useful To Me

Isolator
Supreme

13-Jun-2010 21:00

Isolator About Contact Quote this Post! Mood:

Yells: "STI is hard landing to below 2000..."

x 0
x 0

Alert Admin

For the recent posts in this threads give me a very good reflections of my trading. Thanks to refresh and link up my lost memory. Thank you so much for those who post those wonderful informations in this thread.... Smiley

Useful To Me Not Useful To Me

alexchia01
Elite

13-Jun-2010 18:29

alexchia01 About Contact Quote this Post! Style: Combined Mood:

Yells: "Catch The Stars And Ride With Them"

x 0
x 1

Alert Admin

Last Friday's STI surge was actually the 2nd Bull.

However, the volume was pretty low, so it was a weak Bull.

Based on what I saw on the 2006 World Cup, the market surge during the world cup, fall into a Bear market immediately after it ends and as quickly goes into a 9 months Bull Run.

We'll see how the Market react to the World Cup this year, but I'll start my 2nd phase of purchase tomorrow.

I'll hate to miss out on this Bull Run, even though it may be a Mini-Bull.

Good luck to all.

Useful To Me Not Useful To Me

teeth53
Supreme

13-Jun-2010 00:15

teeth53 About Contact Quote this Post! Style: Flexible Mood:

Yells: "don't learn through life, learn to grow with life "

x 0
x 0

Alert Admin

This one for real. http://www.brillig.com/debt_clock/

The National Debt has continued to increase an average of
$4.09 billion per day since September 28, 2007!
Concerned? Then tell Congress and the White House!

Useful To Me Not Useful To Me

teeth53
Supreme

13-Jun-2010 00:06

teeth53 About Contact Quote this Post! Style: Flexible Mood:

Yells: "don't learn through life, learn to grow with life "

x 0
x 0

Alert Admin

Useful To Me Not Useful To Me

teeth53
Supreme

12-Jun-2010 23:35

teeth53 About Contact Quote this Post! Style: Flexible Mood:

Yells: "don't learn through life, learn to grow with life "

x 0
x 0

Alert Admin

1. Every sing dollar print must backup by one sing dollar in reserve.

2. We cannot print as we like, like those Japanese banana paper money.

3. It will become worthless when we do not have proper backup

4. Run away Inflation will run faster then we like. We earn the same, less and spend much more

5. Creating a false and unsustainable bubble into many 0 numbers in $&cents term and

6. Putting payment into practice of a fail state of sorry affair. Sad ending.

Useful To Me Not Useful To Me

smartrader
Elite

12-Jun-2010 23:07

smartrader About Contact Quote this Post! Mood:

x 0
x 0

Alert Admin

Published June 12, 2010

Show me the money

Why money creation is key

Without increased spending, we risk a recession. Budget deficits are not a worry as they don't have to be funded

By TEH HOOI LING
SENIOR CORRESPONDENT

I ATTENDED an interesting CFA luncheon talk yesterday, and I thought I'd share it with readers here. Frank Ashe, associate professor at Macquarie University Applied Finance Centre in Sydney, Australia, gave a talk titled 'Modern Monetary Theory'. Right from the outset, he warned that his conclusions would be contentious. And indeed they were.

SPENDING POWER
When a sovereign country is in a recession, the government should increase spending. It doesn't matter how much deficit is being chalked up. 'Default for a sovereign government is never necessary,' says Frank Ashe

Dr Ashe argued that government spending or taxation are the levers available to all sovereign countries to manage their economies. Sovereign countries are those with control over their own currencies. By Dr Ashe's definition, Singapore, the US and the UK are sovereign countries but not Greece, Germany and Hong Kong.

When a sovereign country is in a recession, the government should increase spending. It doesn't matter how much deficit is being chalked up. 'Default for a sovereign government is never necessary,' he said.

The governments can just create money or 'print money' via a few key strokes on the computer. 'It can always meet any bill. Do I owe you $1 trillion, ok, I'll just go to the Reserve Bank and say, add $1 trillion to this person's bank account. I don't have to default. Anybody comes to me with a legitimate claim, OK, I can meet that.' The government is never going to run out of money. (This can't be the case if governments borrow in foreign currencies.)

Taxes aren't revenues raised for government's spending, said Dr Ashe. The government shouldn't consider taxes as being revenues. Taxes are just money being destroyed, being taken out of the system.

When a government spends, they create net financial asset in the private sector which the government can then tax. 'It doesn't tax to allow it to spend, it spends so it can collect taxes.'

A string of government surpluses, argued Dr Ashe, will exhaust private savings.

So when discussing government budgets, the question shouldn't be about whether the government has the money to spend, or how it is going to finance all the deficit it is running up.

'This sort of thinking requires the concept that the government has to finance its spending. That is not how modern economics works,' said Dr Ashe. 'We have to shift the argument to: what is the effect on the economy of net government spending? Spending versus taxes, what are the effects on the real economy. Don't have the discussion on how are we going to fund this? The government doesn't have to fund it. The question is what is going to happen in the real economy. That's where the debate must be.'

Spend when there is spare capacity in the economy, and tax when the economy is more than fully utilised.

The thinking that government deficits will have to be funded is based on the gold standard thinking. 'We have been off the gold standard for 40 years. Most text books have this section on monetary theory as if we are still in the gold standard. The IS-LM curve, that's consistent with the gold standard type of thinking.

'We have to throw out those ideas. This is modern monetary theory. If we don't do the debate properly, we are going to reach sub-optimal policies,' argued Dr Ashe. 'We are really going to be stuffing up the world's economy if everybody tries to go through a bit of austerity. We are just going to send ourselves back into a recession.'

So the US should increase their budget deficit, and make sure they spend their money wisely. 'The US has 10 per cent unemployment. What's wrong with the government spending money?'

Of course the government coming in to spend when the economy is fully utilised will lead to price increases. But if there are spare resources in the economy like high unemployment, and the government comes in and employs them, wages may not necessarily go up. So in a recession, governments should increase budget deficits, reduce taxation and various fees. Running a budget deficit is actually going to create net financial assets in the economy.

When economic activities get heated, the government should reduce spending and increase taxation and fees, in which case it is destroying net financial assets.

Is there an economy that does work like this? Yes, said Dr Ashe. Japan is an example. Japan's position is perfectly in line with what the modern monetary management theory is saying. There is a high government deficit, and there are still unutilised resources. So interest rates are low and there is still a deflation. But the government has no problems borrowing money.

The presence of an external party - the rest of the world - does not change the tenor of the conversation. The creation of money will cause the currency to go up and down. 'But if the country is in a depression, there is not enough economic activity, the government prints money, what's going to happen to your exchange rates? It's going to go down. That's exactly what you want to kick start the economy.'

The big assumption in this theory is that the government is sensible and that will not go overboard with the printing. The two previous cases of hyperinflation, Zimbabwe and Germany in the 1920s, said Dr Ashe, were results of inappropriate policies. They increased the money supply when there was a massive reduction in the supply of goods.

'We've got a rather stupid government in Australia, and the government did the right thing there. So the government has to be a chronically stupid one to hit hyperinflation. You've got to have someone like Robert Mugabe to get hyperinflation,' he said.

Stagflation, meanwhile, was also the misapplication of the gold standard type of thinking, said Dr Ashe. By that stage, people were already running fiat currencies. Policy makers mistook the rise in oil prices as inflation and tightened interest rates and spending. The economy just fell over.

No country has stayed on the gold standard for a significant period of time for a very good reason - that the gold standard doesn't work, he said.

Answering a question on Europe, Dr Ashe said the problem is a country beginning with G, and it's not Greece.

Germany is producing too large a surplus. It should make sure that its people spend, go on holiday in Greece and all that sort of stuff. That would solve half of Europe's problem, he argued. 'Everybody looks at the deficit country and says: 'You guys are over-spending.' They don't go along to the surplus country and say: 'You guys are under-spending.' You need both things to happen. Germany has to start spending more, and that's going to save the eurozone. But that's a political problem.'

Interesting arguments. So under the Modern Monetary Theory, the best course is for governments to borrow domestically. And they need to spend or tax depending on where they see the economy going. But of course, the effect of government spending or taxation don't show up immediately. A lot of judgement is required, and that may not be all that easy to get right.

The writer is a CFA charterholder

Useful To Me Not Useful To Me

First < Newer 44041-44060 of 69565 Older> Last

ShareJunction Version: 27 Nov 2020 ver- All Rights Reserved. Copyright ShareJunction Pte. Ltd. Disclaimer: All prices from are delayed. ShareJunction does not provide you with any financial advice. We are not into the business of providing any investment advice. See our Terms and Conditions and Privacy Policy of using this website. Data is delayed for varying periods of time depending on the exchange, but for at least 15 minutes. Copyright © SIX Financial Information Ltd. and its licensors. All Rights reserved. Further distribution and use by third parties prohibited. SIX Financial Information and its licensors make no warranty for information displayed and accept no liability for data and prices. SIX Financial Information reserves the right to adapt and/or alter this website at any time without prior notice.

Web design by FoundationFlux. Hosted with Signetique Cloud.