Category: Business News

Foreign Currency Brokers Come Under Fire

ompanies that allow home investors to trade foreign currencies are coming under fire as regulators consider whether to put more rules on the fast-growing but risky market.

Currency brokers allow ordinary Americans to speculate on the value of dollars, euros and yen, and have grown revenue 374% since 2007, drawing in 615,000 American traders, according to the Aite Group consulting firm.

The most intense recent criticism of these brokers came from a hedge fund manager who researches and invests in companies that cater to home investors.

No double dip (probably)

The economics research team at Goldman Sachs has done excellent work over the past few years; they were among the most prescient forecasters in seeing the economic damage that the housing bust and credit crisis would wreak. So their analysis is worth a particularly close read.