Like UK is finished or so one would like us believe.


http://inthesenewtimes.com/2009/01/20/rogers-says-uk-finished-recommends-selling-pound/

Pound Slumps to Record Versus Yen; Rogers Says U.K. ‘Finished’
Posted by alfied on January 20, 2009

By Paul Gordon and Candice Zachariahs

Jan. 20 (Bloomberg) — The pound dropped to a record low versus the yen and the weakest level since 2002 against the dollar on concern the government will have to rescue more banks as the economy slips into its worst recession since World War II.

Jim Rogers, chairman of Singapore-based Rogers Holdings, said the “U.K. is finished” and investors should sell the currency. Commonwealth Bank of Australia said there was a high risk of a cut to the country’s credit rating outlook and lowered its pound forecast. Prime Minister Gordon Brown authorized a 100 billion pound ($142 billion) bailout for banks.

“I would urge you to sell any sterling you might have,” said Rogers. “It’s finished. I hate to say it, but I would not put any money in the U.K.” Rogers correctly predicted the start of the commodities rally in 1999.

The pound slid to 127.44 yen, the weakest since at least 1971, as of 2:23 p.m. in Tokyo from 130.71 yen yesterday in London, according to data compiled by Bloomberg. It declined 2 percent to $1.4133, the lowest since March 2002, and last traded at $1.4185. The currency slid 1.1 percent to 91.58 pence per euro.

Rogers said the currency will fall below its record low of $1.0520 reached in February 1985.

Yesterday’s package to stabilize the financial sector comes after October’s 50 billion pound bank recapitalization program, which includes a 250 billion pound bank credit line.

Commonwealth Bank of Australia, the nation’s biggest bank, lowered its forecast for the pound to $1.50 by the end of June from a previous estimate of $1.60.

U.K. debt may now be greater than forecast due to the additional bank bailout plans announced by the government since the publication of the government’s pre-budget report on Nov. 24, wrote Sydney-based Richard Grace, chief currency strategist at Commonwealth Bank in a research report today.

Obama becomes prez but world markets take a beating. The Us loses 300+ points...

Bad omen!

But then who knows maybe this charismatic figure can get his team to turn things around.

Cigar chomping Paul Volcker used to be good - let's see if he still has it in him.

Obama- Ivy League material. Don't know if that is a plus.

Most people think it is, though some think he might put his seal on such an avant-garde solution that though things look like they are turning around- the solutions might rear another head or heads of the hydra of economic turmoil, while destroying the ones in place.

Quote:

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Originally posted by investpro

Obama becomes prez but world markets take a beating. The Us loses 300+ points...

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Since there is a sizeable contingent of people who have come here from Dubai and M.E., I thought this would be interesting

http://www.daijiworld.com/news/news_disp.asp?n_id=55704&n_tit=Indians+Flee+Dubai+as+Dreams+Crash++%2D+Fall+out+of++Economic+Crisis

Indians flee Dubai as dreams crash

Mumbai/DUBAI - JAN 14: It's the great escape by Indians who've hit the dead-end in Dubai.

Local police have found at least 3,000 automobiles -- sedans, SUVs, regulars -- abandoned outside Dubai International Airport in the last four months. Police say most of the vehicles had keys in the ignition, a clear sign they were left behind by owners in a hurry to take flight.

The global economic crisis has brought Dubai's economic progress, mirrored by its soaring towers and luxurious resorts, to a stuttering halt. Several people have been laid off in the past months after the realty boom started unraveling.

On the night of December 31, 2008 alone more than 80 vehicles were found at the airport. "Sixty cars were seized on the first day of this year," director general of Airport Security, Mohammed Bin Thani, told DNA over the phone. On the same day, deputy director of traffic, colonel Saif Mohair Al Mazroui, said they seized 22 cars abandoned at a prohibited area in the airport.

Faced with a cash crunch and a bleak future ahead, there were no goodbyes for the migrants -- overwhelmingly South Asians, mostly Indians - just a quiet abandoning of the family car at the airport and other places.

While 2,500 vehicles have been found dumped in the past four months outside Terminal III, which caters to all global airlines, Terminal II, which is only used by Emirates Airlines, had 160 cars during the same period.

"The construction and real estate industry has been hit following the global slowdown and the direct fallout is that professionals working in the realty industry are rapidly losing their jobs," said a senior media professional, in-charge of a realty supplement in Dubai. "In fact, my weekly real estate supplement usually had 60% advertisement and ran into 300-odd pages. In the last seven weeks, it's down to 80 pages and with fewer advertisments," he added.

Mumbai resident D Nair (name changed) had been living in a plush highrise in Sharjah for the past four years. However, the script went horribly wrong when his contract was terminated. Nair used all his credit cards to their maximum limit, shopping for people back home. He then discarded his Honda Accord before returning to India for good. Nair, who stays in a rented apartment in Navi Mumbai today, has a Rs15 lakh loan with a Dubai bank.

Another such victim of the meltdown said he bid goodbye to his car in a small bylane near the airport and hailed a cab. "I was scared because a number of us were doing the same and did not want to be questioned by the police. There was no way I could afford to pay the EMI of 1100 Dhirams for my Ford Focus," he told DNA on condition of anonymity.

When contacted, the dealer for Asgar Ali cars in Sharjah said, "We are helpless and do not know how to tackle this issue. A large number of such owners are from Indian, Sri Lanka, Bangladesh and other South Asian countries."

Quote:

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Originally posted by investpro

Since there is a sizeable contingent of people who have come here from Dubai and M.E., I thought this would be interesting

http://www.daijiworld.com/news/news_disp.asp?n_id=55704&n_tit=Indians+Flee+Dubai+as+Dreams+Crash++%2D+Fall+out+of++Economic+Crisis

Indians flee Dubai as dreams crash

Mumbai/DUBAI - JAN 14: It's the great escape by Indians who've hit the dead-end in Dubai.

Local police have found at least 3,000 automobiles -- sedans, SUVs, regulars -- abandoned outside Dubai International Airport in the last four months. Police say most of the vehicles had keys in the ignition, a clear sign they were left behind by owners in a hurry to take flight.

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well if yesterday was the worst inaugural day for the Dow Jones- today , the day after- will probably go down in history as the best day. Last such best day on Jan 21 was the day after 'Raygun' took office in 1985 for his 2nd term when the Dow rose 2.77%.

Today it rose 3.65%!

man the way the markets are swingin' reminds me of Aretha Franklin's song- 'your love is like a see-saw...'

Your love is like a see saw
Your love is like a see saw baby
Your love is like a see saw
Goin? up and down all around
It?s like a see saw


why Aretha- 'cos she sang at the inauguration yesterday.

I was watching it with my friends and we all thought she'd do "R-E-S-P-E-C-T, Respect...'. Boy were we ever wrong.

BTW - everyone has heard the phrase 'cash is king' but it seems the new buzz phrase is

'cash is trash'

many reasons for that catch line.

Needless to say people get scared and sell when the companies they thought would never fail start to fail.

The strategy right now should be to hold onto your money. Diversify your holdings. Stay away from finance and technology. Buy recession-resistant companies, the food and drug stocks. And look for high dividend yields.

The buzz word is Focus on capital preservation, not appreciation.

Keep well,

Cheers!