Indonesia Suspends Trading Indefinitely
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They closed it late Wednesday morning when it fell around 10 points. The banks are all fine, business as usual. The IDR closed at 9,625 today, which is just a little weaker to the US dollar than last week.
On the phone yesterday with Bali’s leading tour operator, he said he is not experiencing any increase in cancellations to Bali, but it’s logical to expect some if current trends continue.
On the phone yesterday with Bali’s leading tour operator, he said he is not experiencing any increase in cancellations to Bali, but it’s logical to expect some if current trends continue.
Tour operators probably won't feel the crunch for a little while yet. A lot of visitors with plans already in place, and flights paid for, will probably still come for our holidays because too much is lost by cancelling (especially some non-refundable flights). We're planning on enjoying spending some of our hard earned $ in Bali over the next month while we still have some. Although the exchange rate has fallen through the floor so we'll be a bit more careful with our shopping this time. But, if we hadn't already booked we'd probably be staying home and waiting it out to see how we'll fare in all this insanity.
I'm currently watching my superannuation funds siphon away at an alarming rate!! :shock: I'm starting to worry that I'm going to have and kiss the Semi-Retired life away and go back to full time work again; just to get back to square one somehow :cry:
Cheers,
Shaz
I'm currently watching my superannuation funds siphon away at an alarming rate!! :shock: I'm starting to worry that I'm going to have and kiss the Semi-Retired life away and go back to full time work again; just to get back to square one somehow :cry:
Cheers,
Shaz
It wasn't "10 points". It had drops of 10%+ over several days. Not knowing what to do about it, (I surmise), decided to close the Jakarta stock exchange, "indefinitely". It'll be interesting to see what they come up with when they wake up again.
I know the feeling, Steff. Today, the Aussie dollar here was around Rp 6,500. I think I've "lost" 20-25% in the last day or two. Selfish of me, I know, but I'm hoping the Rupiah does a nose-dive. Got to survive somehow.
As we all know, this global "financial melt-down", or whatever you choose to call it, is going to be with all of us for quite a long time. It's like the shit is hitting the fan, big time.
Big countries like Indonesia and China think their domestic consumer bases are big enough to weather the storm. Hmm. Only time will tell. I hope they're right, for their own sakes.
What to make of it all?
"Blame" it on the stupid American financial institutions crazy enough to lend loads of money to people who had no way of paying it back, (the so-called sub-prime mortgage bullshit). Unbelievable, in the first place. Now everybody has to suffer.
Or is this really the beginning of the end for the USA? Just another "culture" that's past its use-by-date. Is that a fiddler I hear playing somewhere in the background?
:shock:
My sentiments exactly...we've worked and saved hard for our future and in one fell swoop some greedy buggers, half the planet away, have negated a good percentage of it. My super fund has lost 20% with no end of the slide in sight...and who knows how safe the bank savings accounts are?!
Can anyone tell me why the USD is still strong, and the AUD is copping the flogging? I just don't understand that one. I feel for you Sunarian, the exchange rate is not helping your situation at all is it?
When the fiddler stops playing, who (or what) will rise from the ashes :?:
Cheers,
Shaz
Thank you Chilli, I hadn't thought of it that way...makes sense, but I hope it works!
Yes Phil, we will be left standing, wondering if anyone got the rego number of the Mack truck that hit us...but we'll dust ourselves off and say what now? Then get on with LIFE. How that life will pay for itself will come out in the wash with us I suppose. :?
Goodnight all,
Cheers,
Shaz
Yes Phil, we will be left standing, wondering if anyone got the rego number of the Mack truck that hit us...but we'll dust ourselves off and say what now? Then get on with LIFE. How that life will pay for itself will come out in the wash with us I suppose. :?
Goodnight all,
Cheers,
Shaz
Yep, i can't believe how the Aussie economy , which is supposed to be strong cops a hammering while the US greenblack ( yes that was deliberate) gets stronger..
Fortunately I have some small cash invested in both US and Indonesian rupiah thanks to some previous very small investments in Bali
But the headspin from working out where to shift it too is driving me slightly insane.
Cheers
Ken
Fortunately I have some small cash invested in both US and Indonesian rupiah thanks to some previous very small investments in Bali
But the headspin from working out where to shift it too is driving me slightly insane.
Cheers
Ken
hi.. 3 main reasons for this:
1. it's almost entirely related the repeated unwinding of the yen carry trade. as risk appetite decreases (as it has rapidly done over the last few weeks), global investors who had sold the yen (an ultra low yielding currency) to buy aud (a relatively high yielding currency - higher a few months back) start to unwind these positions - i.e. they sell their aud forcing down the value of the aud and either pump it back into yen (hence the rise in the value or the yen) or buy US treasury bills - considered a safe haven.. the aud is particularly vulnerable to this..
2. also in the mast 3 months, investors have seen the interest rate differentials between the US and australia drop somewhat.. i.e. before the RBA started cutting the difference in yield between usd and aud was greater than what it is today...
3. weaker and speculation of further declining commodity prices - as prices on commodities that australia produce decrease or as the volume of commodities exported decreases, there's less demand for aud, because to buy commodities from australia, even though the prices are pegged to the usd, you still need to pay in aud equivalent, which means selling whatever your base currency is in order to buy the aud. high demand drives up the price of the aud and speculators jump on board expecting further rises.. lower demand mean fundamental softening of the aud and again, speculators jump on board and exacerbate the swing..
ct
Sorry for all who are caught up in this web. I wake up in the morning seeing some of the worlds biggest financial intitutions going down the pan and wondering if mine will be next and I lose everything.
Starting to spread money around between different banks but nothing I can do about a small pension I have or the eroding pound sterling.
I hope against hope that it will not delay my retirement. I was with a finacial advisor yesterday and will see two more next week to try and get a clearer picture of the best way to go. Fortunately I had no exposue other than a small pension to stocks and share but I will still lose around 10% :x
Starting to spread money around between different banks but nothing I can do about a small pension I have or the eroding pound sterling.
I hope against hope that it will not delay my retirement. I was with a finacial advisor yesterday and will see two more next week to try and get a clearer picture of the best way to go. Fortunately I had no exposue other than a small pension to stocks and share but I will still lose around 10% :x
Jimbo, any money you have in a UK bank is now "safe" up to £50K, and probably over that amount too. So far the only normal losers here are the businesses and anyone that invested in Iceland (the country, not the shop) and even that isn't clear if it will be so bad.
There are only 2 banks in the UK where you can be %100 sure your money is OK - the Post (owned by the government) and the first bank to go bankrupt - Northern Rock, which was saved by the government, oh what seems like years ago but it was only 6 months.
Bali Life - I loved your explanation, just couldn't understand above half of it. And that is the problem, isn't it.
All these wonderful and adventurous monetary "instruments" that 99% of the world simply don't understand - it would now seem that the "clever" 1% that manged to convince the rest of us that they knew what they were doing with our money, didn't have a clue either.
Sanurian is rubbing his hands waiting for a rupiah devaluation - be careful what you wish for!!
Iceland is now bankrupt into the 4th generation with a currency that is worth 1/3 less than a week ago - dead man walking.
Icelandics are having to buy foreign currency to shop.
Oh happy days and it's all just started.
There are only 2 banks in the UK where you can be %100 sure your money is OK - the Post (owned by the government) and the first bank to go bankrupt - Northern Rock, which was saved by the government, oh what seems like years ago but it was only 6 months.
Bali Life - I loved your explanation, just couldn't understand above half of it. And that is the problem, isn't it.
All these wonderful and adventurous monetary "instruments" that 99% of the world simply don't understand - it would now seem that the "clever" 1% that manged to convince the rest of us that they knew what they were doing with our money, didn't have a clue either.
Sanurian is rubbing his hands waiting for a rupiah devaluation - be careful what you wish for!!
Iceland is now bankrupt into the 4th generation with a currency that is worth 1/3 less than a week ago - dead man walking.
Icelandics are having to buy foreign currency to shop.
Oh happy days and it's all just started.
BOE does not guarantee anything but the banking code does but only to 50,000. Banks have failed in the UK and more are on the cards to do so including some of the biggest. I hope they do not but if the stockmarkets fall another 20% as is forcast by the IMF they will.
Businesses are now starting to fail, unemployment is going up in leaps and bounds and we are on our way to a full blown recession. Do not mean to be pessimistic but after having to live in the crappiest of places, be away from my familiy to get into a position where I can retire in Bali the thought of losing most of it is unbearable and acuses me sleepless nights.
Businesses are now starting to fail, unemployment is going up in leaps and bounds and we are on our way to a full blown recession. Do not mean to be pessimistic but after having to live in the crappiest of places, be away from my familiy to get into a position where I can retire in Bali the thought of losing most of it is unbearable and acuses me sleepless nights.
Jimbo,
I can understand your concern and empathise with you .
The worse case scenario is what you've written and the best case is that
it Will work out okay. In the meantime if you start losing sleep over it and stressing, you risk losing more than money, you risk your health.
Take it easy, take your financial steps as best you feel right for your situation and
try to have fun.
chilli
I can understand your concern and empathise with you .
The worse case scenario is what you've written and the best case is that
it Will work out okay. In the meantime if you start losing sleep over it and stressing, you risk losing more than money, you risk your health.
Take it easy, take your financial steps as best you feel right for your situation and
try to have fun.
chilli
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