Tuesday, January 20, 2009

A Silver Lining - I Suppose

I work for a US investment bank and yesterday saw our stock price plunge over 50%. There are another round of job cuts soon and morale is at an all time low. The economy is f*cked. Not just a little but seriously f*cked. Im surrounded by people who are feeling the pinch. I am now seeing those people that looked quietly confident they could ride this out, starting to crack under the pressure of the barrage of daily news. I still feel we have further to fall. I believe that we are not at the bottom and over the next 3 months earnings season there will be more shock and more suprises from behind the curtains of companies yet to speak. Economically the world is screwed.

With all the bad news surrounding us at the moment I have found one part of this that is a positive to me as a poker player in the UK. The exchange rate to the US$.

Currently, on my trading screen, the spot rate is 1.3803, in July last year we were 2.0

This is great for any winning players. Firstly any $ we have on the US sites have gained 35% value. Secondly any profits we make are also now worth a lot more. We are playing the same level of players but our profits (and losses) are now worth more. This is bad if you are a losing player but great if you are a winning player.

Good winning players should be playing in USD and raking this in while the pound is weak making sure they continue to cash out to take full advantage of this situation.

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