Posts filed under “Currency”
Today’s most noteworthy MSM piece is this Bloomberg article, titled. Dollar May Get `Crushed’ as Traders Weigh Up Bailout.
Treasury Secretary Henry Paulson’s plan to end the rout in U.S. financial markets may derail the dollar’s three-month rally as investors weigh the costs of the rescue.
The combination of spending $700 billion on soured mortgage-related assets and providing $400 billion to guarantee money-market mutual funds will boost U.S. borrowing as much as $1 trillion, according to Barclays Capital interest-rate strategist Michael Pond in New York. While the rescue may restore investor confidence to battered financial markets, traders will again focus on the twin budget and current-account deficits and negative real U.S. interest rates.
"As we get to the other side of this, the dollar will get crushed,” said John Taylor, chairman of New York-based International Foreign Exchange Concepts Inc., the world’s biggest currency hedge-fund firm, which manages about $15 billion. . .
"The downdraft on the dollar from the hit to the balance sheet of the U.S. government will dwarf the short-term gains from solving the banking crisis,” said David Woo, London-based global head of foreign-exchange strategy at Barclays, the third- biggest currency trader, according to a 2008 survey by Euromoney Institutional Investor Plc.
Warning: Your currency may be smaller than it appears in the mirror . . .
Dollar May Get `Crushed’ as Traders Weigh Up Bailout
Bo Nielsen and Anchalee Worrachate
Bloomberg, September 22, 2008
Bill Moyers sits down with former Nixon White House strategist and political and economic critic Kevin Phillips, whose latest book BAD MONEY: RECKLESS FINANCE, FAILED POLITICS, AND THE GLOBAL CRISIS OF AMERICAN CAPITALISM explores the role that the crumbling financial sector played in the now-fragile American economy.
September 19, 2008
Investor Marc Faber, publisher of the Gloom, Boom & Doom Report, talks with Bloomberg’s Kathleen Hays about the euro’s performance against the U.S. dollar, the commodities market and the global economy. The euro fell the most in almost eight years against the dollar as traders pared bets the European Central Bank will raise interest rates as the economy slows.
click for video
00:00 Euro versus dollar; "global recession"
01:54 U.S. economy, ECB rates; commodities market
04:14 Investment strategy: dollar, Japan
Running time 05:18
Faber Says Global Economy in Recession; `Long’ on Dollar: Video
Bloomberg, August 8, 2008 15:27 EDT