?

Log in

Crisis

« previous entry | next entry »
2008.10.23 | 02:21
Coordinates: Absurdistan, Central Europe

Could someone please explain to me, that if there’s a financial crisis all over the place, but it started in the USA and they still aren’t feeling well according to the stock markets and all kinds of news bits I hear…

How the heck is it possible that the USD is strengthening against pretty much every other currency?

So much, that though they were on par with CAD a little while ago, it’s about 1.25–1.30 CAD to one USD now.

And of course I have to live in one of the, what, three countries that get trampled over in this. USD from 140 to 210 HUF a piece, EUR from 240 to 280 HUF a piece, GBP from 300 to 350 HUF a piece. Nice, isn’t it?

There go my plans of getting a laptop. Soon enough you can’t get rubbish for 200k if this keeps on going.

Link | Scribble on a scale | Share

Comments {13}

doco

(no subject)

from: doco
date: 2008.10.23 00:45 (UTC)
Link

The news had it that the Hungarian government has been narrowly evading state bankruptcy due to the crisis, which may be why you've been hit so hard by the financial crisis.

Speaking of money, could you give me your current address? I think I only have the one at Thököly út, but as far as I remember you don't really live there, plus you didn't show up at this year's EF. I think I still owe you something from 2005.

Scribble on a scale | String of scales

Ralesk Ne’vennoyx

(no subject)

from: ralesk
date: 2008.10.23 07:51 (UTC)
Link

Yeah, that part is understandable — but that still doesn’t particularly explain why the USD has been strengthening against the CAD and some other currencies like SGD and AUD.

I couldn’t afford going the last two years (plus getting there from abroad unless you own a car is not really simple — Erfurt doesn’t do international flights, nearest stop is Nürnberg), but unless things go really really wrong here, I may be able to go this time around. Would be about time!

Thanks for remembering it :) I’ll tell you the details in e-mail.

Scribble on a scale | The scale before | String of scales

doco

(no subject)

from: doco
date: 2008.10.27 13:23 (UTC)
Link

FWIW, one option you might consider is pooling up with some Austrian furs - granted, it's not really pleasant having sit on the back seat of a crowded car for a few hours, but taking into consideration that the Eurocity from Budapest to Vienna was about €15 the last time I took it, the cost of getting to Austria + your share of petrol might be a lot cheaper than getting a flight to the middle of nowhere and then having to go back all the way by train.

Scribble on a scale | The scale before | String of scales

Ralesk Ne’vennoyx

(no subject)

from: ralesk
date: 2008.10.25 19:56 (UTC)
Link

Dunno if you still use the same GMail address as before, but I sent an e-mail there before I left on the 23rd. Check your spam folder too :)

Scribble on a scale | The scale before | String of scales

doco

(no subject)

from: doco
date: 2008.10.27 13:20 (UTC)
Link

Yes, I got your mail, I'll get back to it as soon as I can. :)

Scribble on a scale | The scale before | String of scales

(no subject)

from: anonymous
date: 2008.10.23 01:46 (UTC)
Link

Basically, as American hedge funds sell assets to meet client redemptions or margin calls, they liquidate their riskiest stuff first. A lot of it is located in other countries. So they sell the asset in local currency and then have to buy dollars to bring it home. The demand for dollars rises while the demand for other currencies decreases. Thus the dollar is up while most everything else goes down. Additionally, the dollar's tenuous status as the global reserve currency means that investors will still flock to it in times of trouble. The rise, however, will be limited to the beginning of the crisis. As things settle down, investors will evaluate the US balance of payments as well as the tremendous growth in public debt in the past few months negatively. At that time the dollar will decline again.

Scribble on a scale | String of scales

Rab Streambattle

(no subject)

from: rab_otta
date: 2008.10.23 08:20 (UTC)
Link

working in a financial institution , I've seen the canadian dollar dropping against a wide variety of others - US a major one , going down nearly 30 cents in just a week.. but also the exchange rate with Jamaica , India , Pakistan dropping, to name just a few ..

Scribble on a scale | String of scales

Balinares

(no subject)

from: balinares
date: 2008.10.23 09:09 (UTC)
Link

Well, the thing to understand about speculation is that it is not about betting on the inherent value of things. No, it's about betting on what the other players will bet.

What this here means is that speculators are betting other speculators will keep betting on the dollar. Not an unreasonable bet altogether; culturally, the US are more likely to stop at nothing to be the top dog on the pile of rubble, so it makes sense to bet other speculators will bet that way too.

Might be a bit shortsighted, though, if you ask me. It's mountains of dollars, not euros, that are sleeping in China's coffers, and it's thus the dollar that China is holding by the balls.

Scribble on a scale | String of scales

Claymore

(no subject)

from: claidheamhmor
date: 2008.10.23 11:27 (UTC)
Link

We've been having a lot of issues too - our currency depreciated something like 50% in a month. Not funny. It will stabilise over the next few months though.

Scribble on a scale | String of scales

Knasty Mike

(no subject)

from: knastymike
date: 2008.10.24 16:31 (UTC)
Link

Fuck, man, I apologize on behalf of my country.

Scribble on a scale | String of scales

cabcat

(no subject)

from: cabcat
date: 2008.10.25 13:48 (UTC)
Link

Australian currency strength is heavilly based on commodities, and what with China reducing it's demand recently that's hit us quite badly.

Scribble on a scale | String of scales

Ralesk Ne’vennoyx

(no subject)

from: ralesk
date: 2008.10.25 19:54 (UTC)
Link

Your and my currency are going pretty much hand in hand lately :) The AUD is still about 140 HUF as it was half a year ago.

Scribble on a scale | The scale before | String of scales

Varinki

(no subject)

from: varinki
date: 2009.04.19 09:31 (UTC)
Link

The NZD went from USD 0.81 in feb 08 to about USD 0.52 in April 08 and has hardly moved since. The only reason that it got so high in the first place was because of high interest rates drawing in investors.

Scribble on a scale | The scale before | String of scales