Bailout Still Uncertain!
Hello fx_tactician! I liked your post, but one question, how much time do I have to wait until can trade in a “safe” market? Or Do I have to read news and get sure for trade
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The currency markets really don’t care if there is good news or bad news, as long as there isn’t uncertainty. The new version of the bailout bill is still drawing a fair amount of ire. Some Representatives in the House are openly opposed to voting yes for the same bailout plan dressed up in a pork barrel spending bil
On Wednesday evening, the US Senate passed the new version of the bailout bill 74-25. The House is expected to vote on Friday. House Representatives are receiving lots of pressure to pass the bailout, but those that are vocal are responding that the right answer is better than an answer right now.
Proponents for the bailout continue to provide murky answers to questions about just how the $700 billion dollar price tag will jump-start the economy. So far, there are no clear indications that providing capital to banks will insure that those banks will extend credit to borrowers, especially since so many borrowers have poor credit scores. The bailout does not appear to address the issue of stability in the housing market at all. It is also unclear whether guaranteeing funds from the Treasury for losses due to failed mortgage backed securities is the best solution going forward. What assurances will the American taxpayer have that we won’t be here again, buying huge amounts of debt for banks and insurance companies that have poor business practices and that made a fortune on their highly leveraged positions before the bottom fell out of the real estate market?
Looking ahead as a trader, it is the better part of wisdom to sit out and wait for a more certain market. Oil and gold are falling, and the DOW is down 300 points (as of this writing). However, the news coming out tomorrow about the bailout and Non-farm payroll make this a hard market to anticipate. Traders looking to get pips from this movement may want to consider reducing their risk exposure.
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