Oh When will the £ DIE!?

[Mega]

http://ftalphaville.ft.com/blog/2009...qual-subprime/

WHY is it not dropping?
Why Why Why?
Mike

[rj1]

Re: Oh When will the £ DIE!?

What is there for it to drop against?

[rabot10]

Re: Oh When will the £ DIE!?

What is there for it to drop against?

Good point!

[pwcmba]

Re: Oh When will the £ DIE!?

As my dear friend John always said "all paper currency is plumeting through space; sometimes one just goes faster than the other"

[occdude]

Re: Oh When will the £ DIE!?

It may sound ironic, but the sicker the currency the more demand for that currency when there is wholesale liquidation. If there are a lot of debts in a particular currency due to a credit bubble, when it bursts it creats an immediate need for currency to cover all the bad debt out there (think assets to cash). So it's the ole supply and demand thing.

Besides that, nothing goes down in a straightl line, technically the selling in sterling may have been short term overdone. The BP and $ are going to get theirs, but not until the credit bubble deflation runs its course and demand for holding cash has be satiated.

[rj1]

Re: Oh When will the £ DIE!?

As my dear friend John always said "all paper currency is plumeting through space; sometimes one just goes faster than the other"

So the economic theory of relativity states that if they're all falling at near the same rate, than the exchange rates for each will fall in the same range.

[rjwjr]

Re: Oh When will the £ DIE!?

...demand for holding cash has be satiated.

If it's any help, I'm quite certain my interest in quid is satiated at my current level of -0- holdings.

[peakishmael]

Re: Oh When will the £ DIE!?

http://ftalphaville.ft.com/blog/2009...qual-subprime/

WHY is it not dropping?
Why Why Why?
Mike

Come on, Mike. It's because you are shorting it. A watched pot...

[GRG55]

Re: Oh When will the £ DIE!?

http://ftalphaville.ft.com/blog/2009...qual-subprime/

WHY is it not dropping?
Why Why Why?
Mike

As we all know markets do not like uncertainty. Could be all the currency traders in the City are waiting for the results from this survey before they decide which way to manipulate the currency markets next...;)

Britain's queen orders count of swans

Mon Jun 29, 2009 3:54pm EDT
LONDON (Reuters) - Quiet please -- Britain's Queen Elizabeth is preparing to have her swans counted.
Buckingham Palace has announced that the annual Swan Upping, a tradition dating back to the 12th century which involves a census of the swan population on the River Thames, will be conducted by the queen's official Swan Marker from July 20-24.

"With the assistance of the Queen's Swan Warden, Professor Christopher Perrins of the University of Oxford, the swans and young cygnets are also assessed for any signs of injury or disease," Buckingham Palace said in announcing the count.
The process involves the Swan Marker, David Barber, rowing up the Thames for five days with the Swan Warden in traditional skiffs while wearing special scarlet uniforms and counting, weighing and measuring swans and cygnets.
It may seem eccentric, but it is very important to the queen.

According to custom, Britain's sovereign owns all unmarked, mute swans in open water, but the queen now exercises the right only on stretches of the Thames and its nearby tributaries.

In medieval times, the Swan Marker would not only travel up the river counting the swans, but would catch as many as possible as they were sought-after for banquets and feasts.
This year, the Swan Marker and the Swan Warden are particularly keen to discover how much damage is being caused to swans and cygnets by attacks from dogs and from discarded fishing tackle.

It is also an important year because Queen Elizabeth has decided to join her team of Swan Uppers for part of the census.

She will follow them up the river and visit a local school project on the whole subject of swans, cygnets and the Thames.

"Education and conservation are essential to the role of Swan Upping and the involvement of school children is always a rewarding experience," Buckingham Palace said.

[sishya]

Re: Oh When will the £ DIE!?

Betting against Pound is the only trade I lost so far. Also the one I thought will make me the least(shorting Gold Miner GDX) made me my second second gainer after CMG. TLT call looking good - so far.

[rjwjr]

Re: Oh When will the £ DIE!?

Come on, Mike. It's because you are shorting it. A watched pot...

peakishmael has the most likely explanation, but waiting for the swan census is certainly a close second in explaining this inexplicable phemomenon of a "strong" pound.

Mike, isn't it true that you Brits never truly adopted the Euro wholeheartedly? Maybe there is an underlying belief that your leaders will denounce the Euro and return to the pound in all transactions so as to provide your government greater flexibility in devaluation/printing and other fun monetary manipulation tools. That would certainly increase the demand for the currency...at least until the devaluation/printing really took hold.

[fliped42]

Re: Oh When will the £ DIE!?

I am interested in knowing what the total amount of debt outstanding both private and public is by currency. I think it goes Dollar, Sterling, Yen. As asset values decline and people need to payback their loans secured by thoses assets in the the foreign or native currency (due to the fact they cannot refinance or are having the loans called) it creates a short squeeze on the currency's cash reserves since the banks are not lending at the same increasing yoy rate of change as when the debt was created (less supply more demand). Coupled that with the destruction of the loan balances and deposit base through all sorts of catastrophic asset declines and losses (stocks, commodities, housing ie supply) and the subsequent writeoffs. I think it is plausable that even sick currencys if they have issued substantial debt and are not compensating for the increase in demand by lending at an increasing yoy rate of change will go up short term. Anyone have information on debt both public and private outstanding by currency type? I would love to see it. I googled it but found nothing helpfull.

[gordonbrown]

Re: Oh When will the £ DIE!?

peakishmael has the most likely explanation, but waiting for the swan census is certainly a close second in explaining this inexplicable phemomenon of a "strong" pound.

Mike, isn't it true that you Brits never truly adopted the Euro wholeheartedly? Maybe there is an underlying belief that your leaders will denounce the Euro and return to the pound in all transactions so as to provide your government greater flexibility in devaluation/printing and other fun monetary manipulation tools. That would certainly increase the demand for the currency...at least until the devaluation/printing really took hold.

I will speak with my esteemed master Lord Mandlebum but I am not aware that we ever adopted the Euro.....you think I know fcuk nothing but I tell you I know Fcuk all.

[plinko]

Re: Oh When will the £ DIE!?

Markets can remain irrational longer than you can sustain sanity.

[rjwjr]

Re: Oh When will the £ DIE!?

I will speak with my esteemed master Lord Mandlebum but I am not aware that we ever adopted the Euro.....you think I know fcuk nothing but I tell you I know Fcuk all.

Thank you for the clarification and sorry for my ignorance on the topic. I should have completed some basic research before commenting.