Category Archives: Global

Thailand decided to impose restrictions

The government of Thailand decided to impose restrictions on any currency sales of $20,000 or more, unless the purpose of the sale is for trade.
Setting trading limits killed their trust with the markets in one move. Now they have to go back and start building trust again, and it will never be the same. Contrast this to Lula in Brazil, who was just named the best president in history or some such silly thing. The didn’t trust him on day one, now the markets love him.

Japanese market

The Japanese market took forever to bottom. Our S&L scandal was lightening fast comparatively and it still took a while. For a market to hit bottom, you have to flush out all the sellers and the Japanese, perhaps for cultural reasons, don’t like taking losses, so they hung on and didn’t bankrupt the banks nor the property owners in a large way. That cleansing, is far more likely here than there.