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Old Jul 25th, 2012, 03:25 PM   #7
nazzdack
 
 
Join Date: Jul 2004
Posts: 8,950
Quote:
Quote from mcgene4xpro:
----financial crisis....
----Now the question....
----If some is losing....
----this means someone else gained it.
----wealth could vanish and disappear....
----understanding is very superficial....
You're wrongly assuming that each AND EVERY "long position" is offset/hedged by a "short position".
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Old Jul 25th, 2012, 03:35 PM   #8
mcgene4xpro
 
 
Join Date: May 2010
Posts: 788
Quote:
Quote from emg:

Here is a trivial question for u. Hopefully, this question will answer to your question above



Why is the value of yen skyrocket against the dollar when japan interest rate at 0% for more than 20 years?
No idea.. if i inverse your question so i might have a hint for the answer.

A: It might be because USA economy did much way worse than the economy of Japan.

I am reading this article now

http://harvardmagazine.com/2010/07/a...ubble?page=0,2
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Old Jul 25th, 2012, 03:39 PM   #9
mcgene4xpro
 
 
Join Date: May 2010
Posts: 788
Quote:
Quote from nazzdack:

You're wrongly assuming that each AND EVERY "long position" is offset/hedged by a "short position".
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Old Jul 25th, 2012, 03:42 PM   #10
mcgene4xpro
 
 
Join Date: May 2010
Posts: 788
Quote:
Quote from nazzdack:

You're wrongly assuming that each AND EVERY "long position" is offset/hedged by a "short position".
If you assume that this is not true..

So, how it is working?
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Old Jul 25th, 2012, 03:44 PM   #11
nazzdack
 
 
Join Date: Jul 2004
Posts: 8,950
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Attachment: Japanese and US yada, yada, yada.....
What is "that" supposed to be?
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Old Jul 25th, 2012, 04:40 PM   #12
emg
 
 
Join Date: Feb 2010
Posts: 5,965
Quote:
Quote from mcgene4xpro:

No idea.. if i inverse your question so i might have a hint for the answer.

A: It might be because USA economy did much way worse than the economy of Japan.

I am reading this article now

http://harvardmagazine.com/2010/07/a...ubble?page=0,2



think about this, the average interest in the u.s from 1990-2007 was about let say 4% and japan stayed at zero hoping to depreciate against the dollar. But, didnt happen because their advanced technology (product) became/becomes the most advanced country in the world keeping the yen higher against the dollar.










Because Japan was the 2nd largest economy in the world before 2010, could it be investors are using yen to hedge or pay yen to buy gold. Its all about maximizing profit.
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