Forex Market Directions

The Return of Normal?

On Thursday the American equities had an excellent day. The three major averages rose more than 3.0% capping a five week rally that has been the sharpest since 1933. Wells Fargo, the large California bank, was the catalyst as it reported much better than expected first quarter earnings. But the entire financial sector participated, as speculation followed the Wells Fargo report and a press story that all major US banks will pass the Treasury Department’s ‘stress tests’ that the financial slump may be ending.

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The American Enigma

The chief savior for the United States in this economic, financial and banking crisis, aside from China of course, will be the American consumer. If United States economic growth is to resume there is no possible substitute for American consumer spending. It is the average US family budget that is the ultimate object of all government plans and business investment.

The chief economic justification for the Washington stimulus package is that it will replace jobs and income lost through the destruction of employment and the reduction in available credit. The vast increase in government debt will be incurred, economically speaking, to restore part of this vanished consumption. In theory Federal spending is designed to fill the so called ‘output gap’, between the goods and services that the economy can produce and the amount that is actually being purchased by consumers.

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Inflation Abroad

The view from a jetliner at 30,000 feet can be clarifying. So the view of the American economy and its prospects from abroad can be instructive.

From overseas the latest Washington political gaffe or media outrage doesn’t even make it to translation. No one in Saudi Arabia, where I have been for a week, asked me if I thought the Democrats or Republicans were responsible for the AIG bonuses. Perhaps it was simple courtesy, but more likely it was not considered important enough to discuss. That people with government power serve people with financial power is not seen as worthy of comment, except maybe with a shrug, ‘that’s the way things work’. But that is not to say people are unaware of the politics and actions of the United States. It is just that their concerns are sharpest for the policy questions that affect them the most. The view from overseas, like that from an airplane, only catches the major formations, the economic policies that have the consequences to reach across oceans.
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ForexAutoPilot.com Review.

This is a review that I have been thinking about for a while. I see hundreds of reviews online for ForexAutoPilot.com. They praise the site and recommend it highly. I think most of them are just trying to refer users so they can collect a commission.
I however have a different view on this site and the product they are offering.

I am going to share my personal experience with you about ForexAutoPilot.com.
I bought this software about 6 months ago. I normally trade manually but I decided to give this program a try.
I opened a live trading account with a Broker that offered Meta Trader 4. This is the trading platform that you have to use their software with.

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The Bernanke Dollar Call?

The spectre haunting Federal Reserve monetary policy is the fear of deflation. A prolonged period of falling prices presses down on both the productive and the consumption sides of the economy. Businesses lose pricing power and face shrinking revenues even if they maintain sales levels. Consumers, frightened by job losses and discouraged by the collapse in family wealth postpone purchases, particularly of large items like homes and cars. Businesses with falling revenues fire workers, who buy less and in turn business production takes another leg down and employment follows.

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