The Japanese Yen isn't finished with you yet.

The Yen is often seen as a risk thermometer. And as of late is has been on the increase. In recent years international investors borrowed over one trillion yen (because it was at 0% interest) and they bought riskier investments with it, including US stocks the tides are now turning though, people are flogging risk and buying Yen. Hence the increase in its value. The worse things get the more it seems to go up.

Why? Because stocks and markets at the moment are not just volatile they are damn risky at best. Investment houses will always tell you its a great time to buy, what I want to see is a time when once and for all one of them will go on the record and say ‘folks, now is a lousy time to buy’. Whatever magical perma-happy pills they are on need to be more widely dispensed especially to skeptics like me. Anyways, all this lunacy still adds up to a stronger Yen.

People who say the markets are not in big trouble (at least if you want …

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The Japanese Yen isn’t finished with you yet.

The Yen is often seen as a risk thermometer. And as of late is has been on the increase. In recent years international investors borrowed over one trillion yen (because it was at 0% interest) and they bought riskier investments with it, including US stocks the tides are now turning though, people are flogging risk and buying Yen. Hence the increase in its value. The worse things get the more it seems to go up.

Why? Because stocks and markets at the moment are not just volatile they are damn risky at best. Investment houses will always tell you its a great time to buy, what I want to see is a time when once and for all one of them will go on the record and say ‘folks, now is a lousy time to buy’. Whatever magical perma-happy pills they are on need to be more widely dispensed especially to skeptics like me. Anyways, all this lunacy still adds up to a stronger Yen.

People who say the markets are not in big trouble (at least if you want …

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Inflation in China 2007

In an article written last week called ‘whats all the fuss about the US dollar’ a point was mentioned regarding the fall of the Dollar and its affect on China’s economy, one of the things mentioned was the inflationary pressure that China will feel when a weak dollar means stronger currencies can purchase more and more commodities like oil.

layman interpretation: Oil is priced in US Dollars, so if the dollar gets weak (eg: at the moment we have a strong euro – so if you went to New York for christmas shopping you could get more for less) then oil becomes cheaper to buy, because everybody needs oil the stronger currencies will be readily able to purchase more and this drives up the price of oil because of demand. China needs oil and almost everything else to continue with growth and as they hold massive dollar reserves there is a twofold action taking place. Firstly their national reserves (in dollars) is worth less, so maybe thats why the Sovereign wealth fund of China is making moves to bail out …

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Budget 2008, Stamp duty reform & Mortgage Interest relief:

The budget was released yesterday and the two things of particular note to any of us with an interest in property are changes in Stamp Duty and also Mortgage Interest Relief.

First we’ll look at Stamp Duty. Reform and simplification was long overdue! What a pity a more generous reduction was not on the cards! Stamp duty is just too easy to get away with I suppose. After all, it is a tax that is ensured to be collected by solicitors who would face the gallows should they fail to collect it on behalf of the government. The U.K. rates are so much better it makes our system look draconian. We copy their laws and rules on almost everything, why can’t we do it on the stamp rates!

Rant complete.

Stamp duty is now on a simplified three tier system.

1. Exempt: if the property is valued at less than €125,000. Maybe we should really call it a two tier system, a quick search of the property sites has shown that there are virtually no inhabitable buildings available in the …

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Budget 2008, Stamp duty reform & Mortgage Interest relief:

The budget was released yesterday and the two things of particular note to any of us with an interest in property are changes in Stamp Duty and also Mortgage Interest Relief.

First we’ll look at Stamp Duty. Reform and simplification was long overdue! What a pity a more generous reduction was not on the cards! Stamp duty is just too easy to get away with I suppose. After all, it is a tax that is ensured to be collected by solicitors who would face the gallows should they fail to collect it on behalf of the government. The U.K. rates are so much better it makes our system look draconian. We copy their laws and rules on almost everything, why can’t we do it on the stamp rates!

Rant complete.

Stamp duty is now on a simplified three tier system.

1. Exempt: if the property is valued at less than €125,000. Maybe we should really call it a two tier system, a quick search of the property sites has shown that there are virtually no inhabitable buildings available in the …

Read More

Whats the fuss about the U.S. Dollar?

The federal reserve is expected to cut rates next week in an effort to alleviate a credit market in crisis. In the meantime there are other developments which may be coming to the rescue, last week Abu Dhabi Investment Authority bought a $7.5 billion stake in Citigroup helping Americas largest bank, who incidentally have massive exposure to those nasty sub-prime loans that are at the root of the present credit crunch. Perhaps Abu Dhabi Investment Authority see an opportunity to pick up assets at a bargain from amongst the wreakage? The other surprise is that China Investment Corporation have expressed a desire to invest in stocks ‘rocked by sub-prime defaults’. The chairman of China Investment Corporation said that the $200 billion fund he directs will be a ‘stabilizing force in the international capital markets’. Perhaps they are seeking credibility in the business world.

Why would it be any other way? If the U.S.A. goes down it will seriously hurt China. Why? For a start the fact that for the near future most of the worlds commodities are in $USD it …

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