Who would have thought that the best friend of a US$ bull would be Kim
Jong Il but it was North Korea’s missile and nuclear test that bounced
the $ after 5 days of selling last week. Commodities are lower as a
result and helping to pressure crude is the realization (as expected)
that nothing new will come out of the OPEC meeting on Thursday after the
Saudi oil minister said they will ‘stay the course.’ US$ 3 mo LIBOR rose
after 38 straight days of decline which took its spread to fed funds to
the lowest since March ’08. Some can attribute the fall to the thawing
of the credit markets but its more likely due to a flood of deposits
into banks and an implicit guarantee of the viability of the large banks
thus making interbank lending relatively risk free. Yesterday Germany’s
IFO was a touch less than expected and the current outlook fell to a
record low dating back to ’91. S&P/CaseShiller HPI is expected to fall
18.4%.

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Only a madman can get the $ to rally?”

  1. Mike in Nola says:

    Madmen are to be expected, which is why the $ is still the best among a bad bunch. You expect Angela Merkel to take out Lil Kim?

  2. davossherman@gmail.com says:

    Globalization has turned into GlobalInsaneAsylum.

  3. bdg123 says:

    The dollar’s strength has little to do with Lil Kim. It has been and will continue to show strengty based on fundamentals. This fear that the Fed is monetizing a few hundred billion dollars is a joke. And so is any discussion the Fed will print their way out of this.

    The dollar’s rise over the last year has been meteoric. Weakness is not a sign of imminent collapse. Because macro factors do not support any such notion. Speculators, central banks and Wall Street have made the dollar the Ponzi trader’s choice for gamesmanship over the last decade. Now fundamentals will likely rout these fools. And fundamentals point to a stronger dollar both intermediate and long term. Who cares if the U.S. is broke? What does that have to do with the dollar? Regardless, everyone else is broke as well. It’s just that no one realizes it yet. Except that is, for the market.