I think it is only fitting, here on FX Madness, to discuss somebody else’s mad behavior. This time around it is one Bernard Madoff, who is accused of running the biggest Ponzi scheme in history. This former NASDAQ chairman apparently milk and lost about 50 billion dollars from investors world wide. I thought that only governments are capable of blowing this kind of money. Details are murky, but seemingly only about half of this amount has been accounted for. Number of high profile institutions are among the victims- HSBC, Banco Santander, Nomura, BNP Paribas and Royal Bank of Scotland. So far international banks have admitted to about 10 billion in losses, but the figure is expected to grow. To rub salt into the wound, Mr. Madoff was an expert sought by Washington regulators who asked for advice on any number of regulatory issues over the years. In 2000, Madoff served on the government’s Advisory Committee on Market Information, established to protect investors by ensuring accurate and full public disclosure of information to them. I would say he knew what he was doing from inside out. While his former bodies, the regulators, are running around trying to sort this mess out, Mad Madoff is out $10 M bail, probably laughing his head off. This is a good one, proves you can’t trust anybody, no matter what the pedigree and provenance.
I’m adding one more order to my growing list of trades. Kiwi is showing strength, I’m going to test it.

I’m trying to sell this cross at 2.4230, with a target of 300 pips. This should show if NZD really is gaining momentum.
I’ll will cover my trades in greater detail yesterday. Right now it is few minutes before FOMC rate announcement. I want to watch what the reaction is, then turn computers off and call it a day.

Mike K.