hisah wrote:There's reality and there's negativity. The reality is CBK devalued the currency. Let the market price the devaluation. What is wrong with that? No CB has been able to fight the market and won. They just delay the eventual outcome.
Negativity - yes, I'm pissed off with CBK murky work. They were to hike rates a long time ago only to do so when the boat had taken enough water. I'm not in KE, but I could see the USD going to 90 back in March 2011. You should be mad at how your purchasing power has been eroded.
I want KE to be successful economical model and the envy of Africa and I can't stand bogus treasury gimmicks. What more can anyone else want...
CORRECT
Well like you said it is impossible to prop up a currency for too long if the fundamentals do not change. Alot of money has been made by traders by shorting currencies that are artificially propped up then reaping the windfall when the currency gives in, which it must do eventually. That is how Geroge Soros 'broke' the BOE. Don't blame the banks, its silly really. The same way you short overvalued shares is the same way banks short or long currencies depending on their outlook. Its a tough business as well, they take some hits too but nobody reports this.