Andrewz wrote: World markets are so soundly stuck to America, that they are even interested in helping and supporting US for pulling it out from the crisis.
This is because US banks and other forms of capital management institutions where so deep buried with all the debts that consumers were facing towards them, that they started to take credits from other national banks to cover their balance. But what did really happen was that those initial credits where passed from one bank to another, or from the US branch of a bank to the EU branches. When these circuit was fully loaded and liquidity was running slow, those financial institutions began to beg for help the EU resident banks, and therefore the crisis is now all over the Europe, including Russia.
Therefore in my opinion the one that are to be blamed are the big players that leveraged too much their capital, by financing local, smaller US banks, with the hope to catch larger profits.
As a conclusion the US banks that filed for bunkruptcy are only the Head of this virus, and the most important qeustion is now where it is its end?
Andrewz wrote:Actually, I don't really understand why, but the dollar on the world market is now appreciating. Thus, (on September 30, 20:52 CET) 1GBP makes 1.77 USD and 1EUR makes 1.40 USD. These figures are really scaring me out. Why? Well simply because about one month ago (or more) 1 GBP was 1.89 USD and 1EUR was 1.55 USD.
Of course the dollar will keep appreciating. Why? Well not because of the powerful US economy, but bcause of the demand of CASH.
Cash is now in high demand. Just take for example Goldman Sachs, they requested a license of a Commercial bank, that will allow them to take deposits from regular people, and then pass those money into their investment models.
And, not to forget the golden rule: in time of crisis Cash is King, investors/market players stop borrowing and drop risky investments.