The market reaction was brutal, punishing the Euro and every foreign exchange and options trader on the wrong side of this trade. Some forex trading firms will go under. Foreign exchange trading desks within banks are, of course, part of ongoing unwilling taxpayer largesse.
Regulators in the United States, Hong Kong, Singapore, the United Kingdom, Switzerland and elsewhere are investigating potential manipulation of the market for foreign currency, sometimes called FX or foreign exchange.
The goal of continued stability -- and certainly the hope for more broadly shared growth -- cannot be taken lightly. Everybody I spoke to in Algiers agreed the country needs a more open and diverse economy to create a bigger pie, and to ensure that all Algerians get their fair share in it.
It's not a secret that many pension fund, mutual fund and hedge fund managers are concerned about high-frequency traders (HFTs). While their concerns are many, perhaps the biggest uncertainty involves the actual extent of HFT participation in the markets, their identities and their intent.
By trading using the daily and weekly chart, minimal time is spent in the markets, maximum results are yielded and the one thing we require most of all -- our time -- can be spent exactly how we choose to. After all, who wants to spend all day staring at a screen?
Governments have five tools to adjust to capital flows: monetary policy, fiscal policy, foreign exchange intervention, prudential tools, and capital controls. The challenge is to find, for each case, the right combination.