Hi, First time posting. Looking at investing in some bank CDs in Australia? Does anyone have any experience with this? I know about EverBank but think they are not competitive(still researching). Thanks
nycll said: Why do you want to buy Australia CDs? To capture currency appreciation and higher interest rate? You may want to look up 2 ETFs: FXA and EWA.
If you are in the deflation camp correct. If there is no way but down for the dollar camp then you do not have to be nimble
gr8f8
New Member
posted: Nov. 11, 2009 @ 12:11p
NYCLL, Thanks for the tip. I'll research. One reason I wanted to buy their CDs in Their money is because they raised their rates showing a willingness to protect their currency. There has been zero evidence or data to suggest that in the US. In fact all messages I've seen is a willingness to let the dollar crater. I'm almost all cash right now in ~1.whatever CDs. This sucks. Real Estate is going down until foreclosure notices at least start to drop a little. I've got gold options but fear there is a bubble brewing there. I lost a big chunk betting against the market, and do not want to jump in now. Oil is high with less consumption and running out of places to put it. Typically I do not trust our capitalism. When Obama changed the Mark to market rule for the banks and 5 days latter banks started announcing near record profits (when in reality most are insolvent) I lost ~500K. If he government can fix the game anytime, then nothing is safe here. Thus would be nice to send something somewhere else.
gr8f8 said: If you are in the deflation camp correct. If there is no way but down for the dollar camp then you do not have to be nimbleSince you mention Gold; could Gold do well with either deflation or inflation? It did weaken a bit last fall as the dollar strengthened, but it hung in there.
gr8f8 said: NYCLL, Thanks for the tip. I'll research. One reason I wanted to buy their CDs in Their money is because they raised their rates showing a willingness to protect their currency. There has been zero evidence or data to suggest that in the US. In fact all messages I've seen is a willingness to let the dollar crater. I'm almost all cash right now in ~1.whatever CDs. This sucks. Real Estate is going down until foreclosure notices at least start to drop a little. I've got gold options but fear there is a bubble brewing there. I lost a big chunk betting against the market, and do not want to jump in now. Oil is high with less consumption and running out of places to put it. Typically I do not trust our capitalism. When Obama changed the Mark to market rule for the banks and 5 days latter banks started announcing near record profits (when in reality most are insolvent) I lost ~500K. If he government can fix the game anytime, then nothing is safe here. Thus would be nice to send something somewhere else.Ouch, 500K loss? When the stress test results were out and MTM was suspended, the financial shares had nowhere to go but up. Say C was $3, and it is not hard to envision in 2 years its earnings will be $3. The market did the right thing after insolvency option was eliminated.
I am a big supporter of pumping money to the real economy, in infrastructures and unemployment benefits, a big dissenter of pumping money to support the banks equity and bond holders, and asset prices like home prices.
Australia raised rate because their economy is overheating (not so much due to protecting currency value, IMHO), due to the big stimulus package in China which buys lots of Aussie exports. Also the Australia economy dodged the bullet of bad banks. They had the similar burst of bubble. Their banks are well regulated, and none of the top 5 banks were allowed to merge to create TBTF problems.
Why not look into Canada? It is similar to Australia in lots of ways: well regulated banking system which didn't drag the economy down, rich in natural resources, relatively vibrant business environment... The problem is both countries are pretty expensive.
gr8f8
New Member
posted: Nov. 11, 2009 @ 12:55p
I'm not an expert but gold should go down with deflation and up with inflation. Currently the dollar is tanking so Gold is going up. My options are long term in GLD, my concern is if the dollar collapses more and the government finds a way to keep gold down. Seems strange to think but I never believed the government would change accounting rules to mark to fantasy, flood them with free money, and let them have outrageous bonuses after they trashed our economy.
My other concern is that GLD cannot cover the gold they are suppose to have and collapse. Another concern is to many naked shorts on GLD.
Sorry for the long rambling
gr8f8
New Member
posted: Nov. 11, 2009 @ 1:01p
Sorry for the newbie mistakes on my comments
The reply by me above was for this comment
"Since you mention Gold; could Gold do well with either deflation or inflation? It did weaken a bit last fall as the dollar strengthened, but it hung in there."
As far as Canada Vs Australia, Canada's I believe that Canada has not seen their real estate bubble pop and come down to a reasonable level. Canada's economy is to closely tied to US. For Australia, you listed my reasons, economy is doing good->great, banks not royally screwed up, I was down there last year and think they have their act together compared to most other countries in the world.
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