New York Stock Exchange and deutsche borse Merge | Business

(Eric Thayer/REUTERS)

So the rumor about the merger between the New York Stock Exchange and Germany’s largest stock exchange turned out to be true. On Tuesday, NYSE Euronext and the Deutsche Borse announced they were merging. The deal will create the largest stock exchange in the world. It may also create more volatility in the market and potentially lead to more investment bubbles. So while the deal makes sense for the exchanges, whether it turns out to be a good thing for investors is another story.

While they are calling the deal a merger, it is really a takeover. The Deutsche Borse will hold 10 of the 17 seats on the combined companies new board. The companies, though, have not agreed on a name yet, something Senator Chuck Schumer has been making a fuss about.

The deal values the NYSE at $10 billion, meaning the stock exchange founded under a buttonwood tree in 1792 is worth just a fifth of Facebook.

Here’s the full story from the New York Times:

New York and German Exchanges Seal Deal.

deconstructiva

I’d personally like easier access to more European stocks there that don’t have ADR’s, but as noted earlier, we have to watch the risks of excessive trading. Global flash crashes, here we come. But we do need a good name. The British always seem to come up with cool names, from FTSE’s “Footsie” to Monty Python. Given the Deutsche Borse is taking over, let’s call the new exchange The Borg. After all, the NYSE has been assimilated, right? Resistance is futile.
94134gamesmith

Gamesmith94134: New York Stock Exchange and German Rival Merge
When two go broke, it only take a brokerage to make it 10 billion stronger and the Fed may waive another QEIII.
Go around bite your own tail? May Pimco may off the trail.
Gold or corn, Silver and soy……Snowball rolls, People roars.
February, white elephant’ paw; March, rain comes pour.
Feel the credit crunch now; ETF, do know how.
Inflation and monetization all is infraction.
Spain, Italy, Turkey, Ireland; Come to Netherland.

May the Buddha bless you?

Gamesmith94134: Yes, the Gold Rush Is Still On…but How Long?

“How will the US, which has almost 400% of total credit market debt to GDP (an all time high in the history of the US, AND totally ignoring the non credit market entitlement obligations), take this ratio down to a more sustainable 175% of GDP? “

“This is actually causing credit to deflate! This is a deflationary crash. Credit is deflating! Look at the charts:

http://www.kondratieffwavecycle.com/double-dip-recession/

M3 is going down despite the printing press. FED printed less than 3 trillion. Debt is to the tune of 50 trillion. FED needs to print tens of trillions more to replace credit with actual money or it can continue to deflate.”
John Maynard is right, and QEII is wrong. QEII is being challenged by its members of the board that debasing the currency and urge renminbi to appreciate did not cut the trade deficit. Perhaps, I blame the Fed passing the ball to JP Morgan and Goldman Sachs to monopolize the commodity market when the banking industry was anemic and real estate devalued. Now, everything in the commodity market jumped over 50-200%, and the population or productivity grew a little, it seems my broker is telling me my gold is on its way to $2000.
Now, New York and Chicago exchanges have lost their leadership; the late-comers from Brussels, Paris, London, Toronto must compete with the Emerging market nations like Tokyo, Hong Kong, Shanghai, Singapore, and Sydney in the new trading orders. Perhaps, it is challenge on the have and have-not by their credit crunch; then, even the “dark Pool” must face sanitization under such competitions. Should we look into the double dip on recession or ponder why ETF telling me my gold is perfectly safe in the vault in London?
We will see the coming on the renminbi moves on a more transparent transition; then dollar is not significant if the QEIII for another $600 billion dollar printed. I think it is plausible that all the Cash-for-Gold businesses switch to Gold-for-Cash models. It may not be a myth either if consumerism works in China or Russia that its currency is much to gain guaranteed and not deflate. Personally, I think the mutual funds and IRA should attribute to the credit on the bank that loan to business instead giving more bonuses to the brokerage agents since I will never see my gold in my life. Why not I cash in my old gold and get ahead with my cash flow?
May the Buddha bless you?