The government on Monday unveiled a revamped rescue package to insurance giant American International Group and will provide the troubled company with another $30 billion in taxpayer money on an “as needed” basis. The new package comes as AIG has burned through cash and been unable to find buyers for pieces of its company that it hoped to sell to repay the government on its existing aid package, which totals some $150 billion. More and more money is being pumped into this company and they are loosing it even faster. Last quarter AIG lost $61.7 billion in the fourth quarter, the biggest quarterly loss in U.S. corporate history. I have a feeling we will receive similar news about largest banks soon- more money is needed. Bottomless well, a true money pit. It is not my intention to criticize government for continued support of these enterprises. Not any more at least. I don’t understand the complexity of the situation and have neither desire nor hope to ever grasp it. But at this point I can’t help having an uneasy feeling that our financial authorities are betting future of the country on this never ending support of few large companies. It is not just me, must be a wide spread sentiment -stock market is sinking once again. Should we be making this kind of gamble?
Yesterday I wrote about NZD-JPY as an example of all Yen pairs. After it was posted I decided to take a trade in accordance with what hourly charts were indicating to me. I sold GBP-JPY, rather out of character for my recent trading patterns. Thought to myself “Why not to try to take advantage of it?”. Trade was initiated as soon as markets opened.
Trade turned out nicely, but size was small, comparing to my customary trades. JPY probably still has a little more left in it, but I’m happy here. Good gain. I will be looking for reversals now on hourly charts. The type of patterns I like to see and use, take at least a day to develop on this time frame. In the next update NZD-JPY will be used again to check for possible long entry. Order on 4H chart is still valid.
While waiting for Yen to get weaker again, I’ll test this pair.
Australian Dollar is showing possible signs of recovery. They are very subtle , but I think this is worth a try. Buy order was placed in AUD-CHF 0.7495, objective of 110 pips or so. At this time price keeps making new lows but the moves are loosing momentum and pullbacks getting bigger. First signs of reversal. My plan is to keep moving the buy order to just above most recent highs if the price make new lows. Dynamic order, kind of.
Hello, I’ve been following this blog for a week and just want you to know it is very interesting, even though I don’t trade Forex. Hope to soon. Very good job.
Thank you for kind comment. Glad you like it.
Looks like you did good, too. Going long now?
And a money pit it is- no end in sight. I don’t even know how anybody can keep track of these amounts. Most depressing is the fact that more is still to come!
Heather, not yet. Waiting for now.
Yes, Casey, you are right. At this point the end is beyond horizon.
Word around camp fire is Dow under 6000 later in the year. AIG is trying to sell some businesses but no takers. FED will have keep bailing them out for now.