Community Views : What’s on the boards today….17th March 2011

17th March 2011

The Telegraph

"There is no "silver bullet" to prevent a future financial crisis and regulators will have to constantly watch to see how the banking system adapts to new rules, according to Lord Turner, chairman of the Financial Services Authority (FSA)."

lordbarnett comments: "The FSA and Brown are to blame for the crisis we are in, Brown was stupid, arrogant and incompetent, what do the FSA do all day? these are supposed to be professional people who are clued up on the financial system, my own experience of the FSA is that its politically driven, its not independent, perhaps these people did inform Brown what the risks were but as usual we will have to wait for Turner to retire and perhaps write the usual book before he shouts, " I told Brown about the trouble brewing years before it happened but he ignored me".

FT Adviser has covered this as well.

FT Alphaville

"The futures market is pointing toward another gut-wrenching sell off in Tokyo on Thursday."

A Reader says: "I think they've reached a buying opportunity, once this little issue here clears out of the way."  

The Economist has created a chart to show stock markets days after disasters:

Henry V wrote: "Please do not forget the effect of the earthquake in Chile. Following the weekend disaster, by Thursday the market was higher. In addition, the Chilean peso appreciated rapidly in response to perceived reconstruction investments. Markets' reaction to natural and human disasters are very often difficult to read and generalize for all situations. Another "crazy" example is the effect of Argentina's former president Kirchnet on the country's stocks: they shot up!"

The Telegraph is discussing the hopes for the stock exchange after the G7:

"The FTSE 100 edged higher on hopes that the G7 will act to calm financial markets after the escalating crisis at Japan's earthquake-damage nuclear plant sent the yen soaring to a post-War high and shares falling again."

eau_rouge_flat_out comments: "The fall in the markets gives a good indication of how long it takes for the hedge fund/bank vultures to set up their short positions. Friday – disaster, Saturday – Monday – set up profit making short positions, Tuesday – sell. Journalists have pointed out that there has been no looting in Japan. Well, not on the streets but the nation, and the rest of the world, is being mugged right now."

AlfTupperDarlin replied: "What utter nonsense! What you are seeing is Japanese investors and institutions (particularly insurance companies) liquidating assets both in Japan and overseas. This repatriation of Japanese investments abroad is showing up as large drops in Western markets and a jump in the Yen"

The Motley Fool community are discussing "Implications of Japanese earthquake for markets".

The Telegraph

"Budget 2011: George Osborne hints at more reforms as OECD cuts UK growth but applauds austerity measures. The UK's growth forecast for 2011 has been cut from 1.7pc to 1.5pc by the Organisation for Economic Co-operation and Development (OECD)."

mbaproperty thinks: "We have to have austerity cuts and keep the uk out of recession or else we will lose our AAA rating and the cost of the debt repayment will increase. The problem is unemployment has just reached a 17 year high and the bulk of cuts are yet to happen pushing this higher again and as a significant part of the economy is based on the public buying goods and services a double dip looks more probable i would predict at least one negative quarter this year. This all means interest rates will have to remain low."

The Independent community think:

Endgames: "George Osborne is trying to do the fiscal equivalent of old King Canute who tried to turn back the ocean tides on royal command. King Canute learned the hard way of the limits of regal power,and was humbled. To turn the economic tide in the UK's favour is going to take more than BOE's printing presses nor any amount of titillating titbits of give-a ways is going to change anything.

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