Obama Administration Takes Reins of US Infrastructure

Housing - Insurance - Banking - Automotive Industries all fall under Washington’s control. With eyes on the health care system - education - transportation - and…Don’t Fart - That could be considered as a carbon emission! 

Who wants to be a CEO?

By now most readers have heard that the Obama administration has “ousted” the CEO of General Motors - once the largest and most admired car manufacturer in the world.

G20 Expectations - Set at What Level?

The world has been waiting for what some have coined “April Financial Fools Day” as the International Community will either band together - or split apart.

Protectionism - Protecting Who?

An interesting group of self interests and differing agendas seem to be emerging … As for demonstrations - they are planned throughout London - but who is doing the planning - anywhere?

Sell The Dollar - Buy The ????  - Book

Peter Schiff, author of “Crash Proof” and “The Little Book of Bull Moves in Bear Markets”  gave a lecture this past weekend in Boca Raton at Florida Atlantic University. His predictions of the current crisis have given him quite a following.  During the Q and A session I asked Mr. Schiff what his prediction of what would be the outcome of the G20 meeting. His response was a short and sweet -” It will be a photo op”  - to which I asked a follow up question as to what will be the reaction of people who understand the implications - ” he said ” they will sell the dollar”  - So then what will people buy….. the Q and A shifted to the subject of Gold.

The Week Ahead - Consolidated Economic Calendar

Under “normal” conditions this would be a news worthy week with NFP - unemployment data taking up the weeks speculation - but we all know the numbers will be bad - and the markets have shrugged off bad data lately.

Check out the “1st on Forex” Consolidated Summary of Scheduled News Events for the “Week Ahead”  on the www.ienweb.com site.

USD-JPY 4 Hour Chart - Inverse Head and Shoulder Setting Up?

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

AIG -  Diversionary Tactic?

I find it interesting that the general public is up in arms about a measly $100 Million in AIG bonuses - yet practically oblivious to the extra $1.2 Trillion dollars that the Fed has authorized. They have created the “Ouroboros” snake to print the money to swallow the US Treasuries.  

 US Constitution, Capitalism and Confidence

So much is happening so fast that the US Congress is passing 1,000 + page spending bills without reading it - at the request of the new president - Really….

 Claw Back is what everyone is seeking - to just get back to break even, to that point before Bear Stearns was slaughtered, but at what cost?

 If the rules are going to be changed in the middle of the game - constantly - eventually people will not play - then where will we be?

 Breaking contracts and taxing individuals at 90% retroactive is worse than a dangerous precedent - it borders on treason - based on the fact that elected officials are not holding up their oath to support and defend the constitution of the United States - and may be recklessly destroying the foundations of the country.

 Quantitative Easing Spreads - As Currency Wars Get Underway

I was broadcasting live coverage of the The US Federal Reserve on Wednesday when I nearly fell out of my chair to short the dollar. The video of the live broadcast is available on the www.Investors-Education-Network.com site.

Although I discussed the possibility of Quantitative Easing, I assumed that Bernanke would wait at least until after the G20 meeting to pump another Trillion dollars into the economy.

 If all the central banks follow suite - they will effectively be filling the pool with more paper.

 Budget - Unsustainable?

On Friday the Congressional Budget Office told the Obama administration that the current level of debt, budget, and spending is “Unsustainable”. The administrations press secretary dismissed the warning with a analogy of trying to pick the basketball playoffs five years out.

 From where I sit -  that’s the problem… I believe that too many people,  that should know better, are treating this as if it was just a game… Well - maybe it is…

  Reservations on Reserve Currency?

The US Dollar suffered it’s worst week since 1985, and the Euro staged it’s best ever gain since it’s 1999 inception. Gold surged on the Quantitative Easing surprise, and some analysts expect Gold to retest the $1,000 mark. Is this the end of the Greenback?

 Signs Earlier in the Week?

The currencies showed no reaction to fundamental surprises on Monday and Tuesday.

 TICS Data - Amazingly Horrible - Setup for FOMC?

The Treasury Inflows were astoundingly weak with a negative $43 Billion versus expectations of a positive $44 Billion. Was this a factor in the QE decision?

 New Housing Starts??  - Signaling a Real Estate Bottom?

New construction unexpectedly jumped  up 22% versus an expected negative -3.4%. Where and who is building houses?

 The glut of unsold property has not disappeared, so who and how are new housing starts getting underway? Are the government accountants beginning to start counting the boxes under the bridges? Let’s wait for the revisions next month. Let’s see what the revisions look like next month!

 The Week Ahead - Lot’s of Scheduled News and High Level Meetings

Break out your popcorn and settle in your favorite seat as Ben Bernanke and Tim Geithner will be testifying on financial regulation reform before House Financial Services Committee in Washington

 Meanwhile Back at the Bank - FDIC

Market News International on Friday reported that Sheil Bair - Chairman of the FDIC stated that…. Although the FDIC deposit insurance funds is heading to zero, she’s confident it will be replenished. as the long term outlook for insured banks is “very good”

 This as Ben Bernanke on Friday addressed the Community Banks and reassured them that opportunities are available and that they need to continue lending. As for “too big to fail”, Bernanke indicated oversight is needed - which drew large applause. Bernanke said the Fed will support housing market and FDIC for now, but will taper off and withdraw.

 Tune in to the “1^st on Forex” Webinars on FX Street

Register for The Week Ahead Calendar and Webinar Every Monday at 16:00 GMT - Click Here

and Live Webinar Coverage of  the US GDP Report  Click here to Register and Tune in Thursday March 26 at 7:30 Eastern US time (11:30 GMT)  

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

 Swiss Secrecy Laws Soon to be Swiss Cheese?

The Financial Times has been putting the Currencies on the front page as of the last few days with focus on the Swiss Franc being devalued by the Swiss National Bank.  Peter Garnham at the FT quoted Chris Turner at ING as saying, “Let the currency wars begin.”

More Interventions on the Way?

With the G20 now bubbling up to a quick boil - we better hope that these G’s get it right. It seems that common sense is everywhere but where it is needed most when it comes to stimulus and waking up and/or firing the regulators.

 USD-CHF 1 Hour Chart - Raising the White Flag  

But will the Intervention Hold?

 USD-CHF - Daily Chart - It’s Just Another Retracement

 Tune in to the “1^st on Forex” Webinars on FX Street

Register for The Week Ahead Calendar and Webinar Every Monday at 16:00 GMT - Click Here

and Live Webinar Coverage of FOMC US Interest Rate Announcement (As if they are going to change the rates or say something we don’t know?)  Click here to Register and Tune in Wednesday March 18 at 17:30 GMT)

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

Charts Setting Up on Short Term

USD-JPY 30 Minute Chart - 1:20am EST

Inverse Head and Shoulder Setting Up

USD-CAD - 30 Min Chart 1:28 am EST

Triangle Pattern Setting Up

US is Light on Scheduled News This Week

Summarized Economic Calendar and Weekly Webinar

Get my filtered and concise list of selected scheduled news events I am following and register for The Week Ahead Calendar and Webinar - Click Here

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

By Jerry Furst - Sr Analyst “1st on Forex”

at Investors Education Network.com

Mid Week Review

As we await Interest Rates from the ECB and the UK.

The fools on the hill continue to entertain us with their multi-trillion dollar show…

The Cast of Characters:

The President, The Fed Chairman, the Treasury Secretary, the Prime Minister of the UK, and Jimmy Rodgers!

So far this week has shown…

An amazing Soap opera of intrigue as the President of the United States suggested that it might be a good time to start buying into the stock market for “the long term”.

Tuesday Fed Chairman Ben Bernanke took the hot seat for Senate testimony and amongst some of the things he said was….

“There was Failure of oversight….”

Looming Commercial Real Estate Crisis

AIG’s Financial Product Division was separate from their New York State Insurance company…. (However they both seem to be on the same ship….)

Rewarding the Three major credit agencies, despite their lack of any credible ratings - seemed to be ok with the Fed chairman

Bernanke Dodged the question

When asked, “Should banks, using taxpayer money to bail them out, charge those same taxpayers in excess of 20% interest on credit cards?” He bailed out of an answer…

When the question of Nationalization came up - his answer was that he did not think it would be necessary - but was prepared…(that means to me- it will and basically has already happened)

A pointed question of “Do you think there are any “outer limits” as to how much money you are prepared and able to provide to bail out banks - received a vague ” there is a limit…  (just how many trillion$ is still To Be Determined)

Meanwhile - over at the White House….

UK Prime Minster Brown was not treated to formal flags and podiums… but a strange oval office press conference was had…

Key points :

The G20 meeting next month in London “must clean up the banking system” and the Prim Minister mentioned that the possibility of a “Global New Deal” is quite possible in the next few months….

Does that imply that all citizens of the earth will become equally miserable?

“The Challenges are Global”

“We need a Green Recovery”

“Regulatory System Needs Global Reform”

US Treasury Secretary Timmy Gee…

Was being lobbed soft balls in his testimony -  the most important thing I heard was that the Senate leader notified the panel that the Treasury Secretary was prepared to go behind closed doors and answer questions (away from the television cameras)  Thanks for your public service guys…  

Meanwhile - Commodity Jimmy Rodgers Over in Singapore…

Interviewed live on MSNBC Wednesday Evening by Larry Kudlow

He said he was “Mind Boggled” at how the US government is imploding and being run by…. well let’s just say he did not have nice things to say about the Treasury Secretary or Fed Chairman….

Highlights and Quotes by the ex-patriot….

• - Mainly watching the markets….
• - Supply of Commodities is declining
• - Fundamentals for Commodities “Getting Better”
• - He will be exiting the US Dollar sometime in 2009 or 2010
• - In the last 2 months “the only market I’ve bought has been China”

So there you have a mid week run down - as the world awaits the Bank of England and the ECB to lower rates on Thursday - the limplications may not have any effect as we get closer to the April Fools gathering of the G20.

 But you must admit - living in this time- let alone trading through this time is as Visa would say… “priceless”…..

 Stay Tuned… It just might get more interesting as the Governments are coming to the rescue of us all!  Makes me feel quite comfortable…

 Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey. 

Lots of Scheduled News on the Calendar

Interest Rates Around the Globe Expected To Drop

Australia, Canada, The UK, and the Euro Zone are scheduled and expected to lower interest rates this week. The question is, are the moves already baked into the charts?

Non-Farm Payroll - Unemployment Data Due Friday

Employment data may come in at historically horrendous levels. Wednesday data from ADP and Challenger, and Thursday from Monster.com will lead up to Friday’s Non-Farm Payroll report. Wrapping up the week is the US consumer credit report at 15:00 Friday.

European Union? No Help for Eastern Europe. The Euro continues to slide against the US Dollar as witnessed by the chart below. Note the post from Febrauary 27th.

EUR-USD - 60 Min chart - Beautiful Triangle Pattern continues to play out.

Summarized Economic Calendar and Weekly Webinar

To see my filtered and concise list of selected scheduled news events I am following and to register for The Week Ahead Calendar and Webinar - Click Here

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.