Forex Futures Forum Archive for 03/30/2011

Syd 12:36 GMT March 30, 2011 Reply   
A CAMPAIGN urging first home buyers to take part in a "buyer's strike'' in an effort to drive down property prices is gaining momentum online. Spokesman David Collyer aid first home buyers would face financial ruin when their house prices fell below their debt.
"The problem is that prices have got so far that two solid jobs and a good deposit is no longer enough to buy a house in Melbourne,'' he said.Mr Collyer said real estate prices in the USA were still dropping five years after the property bubble burst."People should not underestimate the significance of what is about to unfold and we think it will unfold very soon,'' he said.www.heraldsun.com.au/news/more-news/first-home-buyers-strike-growing/story-fn7x8me2-1226030974559

Syd 07:48 GMT March 30, 2011 Reply   
US ECONOMIST David Hale has delivered a huge warning to Australia : Reply
US ECONOMIST David Hale has delivered a huge warning to Australia overall and to BHP Billiton and Rio Tinto in particular. It is all about China.
That rise and rise in our dollar is built on the China-driven commodity boom. Hale's big warning was that China's spectacular growth might -- indeed, would -- slow. If it ended up slowing dramatically -- not Hale's prediction -- our dollar would clearly plunge.
TERRY MCCRANN

Syd 05:34 GMT March 30, 2011 Reply   
SHANGHAI (Dow Jones)--The People's Bank of China earlier this week told trust companies they will have to deposit the equivalent of 150% of the value of any increase in new lending this year in a special non-interest-paying account at the central bank, as part of measures to rein in lending by such firms, the 21st Century Business Herald reported Wednesday, citing an unnamed source.
http://research.tdameritrade.com/public/markets/news/story.asp?docKey=1-BT20110329010113-412Q0276KPQUJFPFO27NTK5N72&clauses=

China is likely to hike interest rates twice in the first half of 2011 to combat high inflation, economists at Bank of China Ltd. say. China's CPI is likely to sustain around 4.9% on-year in 1Q, unchanged from January's 4.9% rise and above the government's 4.0% target for the year, they say. China's broadest measure of money supply, M2, is likely to rise by 15.5% in Q1. "Two interest rate hikes is understandable, as actual positive interest rates are an important choice to combat high inflation pressure," Cao Yuanzheng, chief economist at Bank of China says, adding that China may still continue to hike the reserve requirement ratio, but noting that room is limited. The economists expect the CNY is to appreciate around 3.0%-5.0% against the USD this year. They predict that China's GDP growth will moderate to 9.0% this year, while 1Q GDP growth is likely to be around 9.2% as government monetary policy tightens.

With all of the above , who is going to buy the 64 million apartments in China with all the new lawas and rate hikes????
www.sbs.com.au/dateline/story/watch/id/601007/n/China-s-Ghost-Cities

Video journalist Adrian Brown wanders through malls of vacant shops, and roads lined with empty apartment buildings… 64 million apartments are said to be empty across the country and one of the few shop owners says he once didn’t sell anything for four or five days.
http://www.sbs.com.au/dateline/story/about/id/601007/n/China-s-Ghost-Cities