The Effects of the Automaker Bailout Plan

FXexpert

Master Trader
Dec 13, 2008
503
3
47
Full Article can be found at: Forex Secrets Blog

USD hits 13 year low vs. JPY

The USD hit an all time low against the Yen on Friday, before taking the first steps in
recovering due to the Bush Administration's pledge to help the ailing big 3.

The Dollar, which has been falling against the Yen for some time now, took it's deepest hit when congress rejected a $14 billion automaker bailout plan Thursday evening. The congress' second rejection of a plan...
 

Enivid

Administrator
Staff member
Nov 30, 2008
18,892
1,428
144
Odesa
www.earnforex.com
Full Article can be found at: Forex Secrets Blog

USD hits 13 year low vs. JPY

The USD hit an all time low against the Yen on Friday, before taking the first steps in
recovering due to the Bush Administration's pledge to help the ailing big 3.

The Dollar, which has been falling against the Yen for some time now, took it's deepest hit when congress rejected a $14 billion automaker bailout plan Thursday evening. The congress' second rejection of a plan...
Do you think dollar will continue to depreciate against the yen if the bailout plan fails and the Detroit automakers will have to file bankruptcy under Chapter 11?
 
F

forexblab

Guest
I think the US government needs to borrow at least US$1 trillion in the coming year, excluding the US Treasury's $700 billion plan to bail out the financial and other industries
 

FXexpert

Master Trader
Dec 13, 2008
503
3
47
Yes I think the dollar would continue its depreciation against the Yen if the bailout plan would've failed, now it depends what GM, Ford(if they accept the money, they have yet to) & Chrysler do with the funds they've received. There are rumors that Toyota is laying off jobs as well due to slumping U.S. sales.
 
J

jsawvel

Guest
Recent news?

Any comments on how the recent economic bailout is affecting trading?
 

onlinestock

Active Trader
Feb 5, 2009
6
0
32
I personally feel that, this will not happen, as now govt. is in serious action mood, we might see better days than what are today. Dollar also will not depreciate further, this could be its lowest cut off. I am saying this because i had business meeting last week in some of my southern Asia offices. What i found was a bit surprising. First upon they are not much affected by this recession, neither they are caring about it. They are still progressing but now at a bit slower rate. This can be advantageous to us (take it as US or businessman). What you think?
 

Sinnerman

Active Trader
Jan 24, 2009
36
0
37
Well I'm an American car guy. I drive a Corvette & a Mustang so I'm biased :)
Corvette I understand, it's a great car, but a Mustang? Why? In the 1/4 mile it will get eaten by some pretty basic ricers, and on the track... well, don't even bother putting it on a track because that would just be embarrassing :).

Back to forex though, I am a believer in free markets for the most part, and I don't understand the logic behind any of these bailouts - they are just helping the weak to survive, which makes the entire gene pool weaker, from a Darwinian perspective. The idea of "too big to fail" is ridiculous because antitrust regulation should have been in place to protect the free market from these absurdly large companies before they even mutated into their current forms. As it stands, the sooner they fail, the better.
 

FXexpert

Master Trader
Dec 13, 2008
503
3
47
I agree the standard stangs are a bit slow, I have a shebly GT500 so it competes a bit better(although it could be faster). Ford's constant cost cutting has dire results :rolleyes:
 

Adam Jackson

Trader
Jun 15, 2019
68
5
9
29
Both budgetary transparency and regulation are of fundamental significance with regards to how agreeable you should feel with your broker. As unpredictability has grabbed in the foreign exchange showcase, we've seen undercapitalized brokers closing down shop with small cautioning. This can leave traders in huge wreckage. If you comprehend the money related positioning of your broker, you can comprehend whether he'll have the option to climate the up and coming tempests and unpredictability in FX.