Loonie takes bit hit

[CBC News]

The Canadian dollar opened 1.1 cents US lower on Wednesday — after taking its biggest hit in more than a year the day before — as alarm bells rang in previously obscure corners of the world's credit markets.
The latest upheaval, which relates to money borrowed in Japan, added to woes linked to U.S. junk mortgages and to huge volumes of commercial IOUs based on anything from car loans to credit card payments
Also negative for the dollar was news on Tuesday that Canada's exports fell for the third straight month in June, narrowing the country's trade surplus with the rest of the world.
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Are you worried about the state of Canada's economy?


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[tamarin]

I'm worried about an economy, that like the US, is weighed down with a basket of financial instruments even longtime market participants have trouble explaining. It's gotten ridiculous. Greed has helped create an enormous house of cards that seemingly is kept aloft by the ability of central banks to create liquidity anytime key markets sneeze. Where the central banks get their money is a question probably better asked of Mattel.

 

[Toro]

If you are worried about global financial markets - and I am - then the loonie is going down.

I put a de facto short on it today.

 

[tamarin]

You shorted Canada? There are places for ruffians like you...

 

[BitWhys]

I'm starting to get pissed at the Central. Its like they're deliberately jawboning it down. Whoever they're bailing out here needed collateral redefined so it sure as hell isn't the majors.

Let them burn, already.

 

[tamarin]

We need a return to market sanity and transparency. When you have key market participants and pundits who haven't a clue as to the meaning and context of a variety of investment vehicles careening through the financial district today you've got trouble. And a recipe for mayhem and surprise. Market leaders should take asset and investment instruments off the table that only the hoary and half-sane understand.

 

[Kreskin]

I'm looking to buy into the 'reverse-repurchase hedged future-swap forward-agreement' market. Indexed of course, and hopefully with non-corporate flow-through income with rights to buy shorted commercial paper and equity-linked warrants.

 

[Toro]

I'm going to shamelessly pimp my blog and post a piece I just finished writing.

http://runningofthebulls.typepad.com/toros_running_of_the_bull/2007/08/market-action-1.html

 

[Dreadful Nonsense]

I'm looking to buy into the 'reverse-repurchase hedged future-swap forward-agreement' market. Indexed of course, and hopefully with non-corporate flow-through income with rights to buy shorted commercial paper and equity-linked warrants.

If you inflate the derivitives before compensating for value flux, you are going to come up up short. I would reverse your forward agreement strategy before the income investment funds are hedged.

 

[Kreskin]

If you inflate the derivitives before compensating for value flux, you are going to come up up short. I would reverse your forward agreement strategy before the income investment funds are hedged.

I'm concerned about margin calling on variable reverse forwards, especially leveraged. It might be better to reverse risk-adjusted currency covered futures.

 

[Dreadful Nonsense]

I'm concerned about margin calling on variable reverse forwards, especially leveraged. It might be better to reverse risk-adjusted currency covered futures.

I've solved that by downgrading futures before they mature by over compensating the market with fellow investors. Neat trick if you have enough clout.

 

[Kreskin]

OK I took your advice. I bought the arbitraged non-voting series D semi-retractable.

 

[Dreadful Nonsense]

OK I took your advice. I bought the arbitraged non-voting series D semi-retractable.

Careful it doesn't get caught in your finger. There is a recall on model AD294657493M.