Tommaso -- "other currencies” This liquidity crisis is happening at home, the "dollar," is at risk. You can't have a tech/telecom meltdown with write-downs, write-off and bankruptcies and move on with life?
Can you buy a burger with a euro option?
In my country there is an outfit called JDS Uniphase and they lost $50 billion in Q1, that's more than the gdp of New Zealand, and if you add up Nortel’s misadventures you’re talking some real money. Moreover there has been a huge amount of lay-offs, and some people have this habit of using their mortgage as savings accounts. Unemployed with a home equity loan? After you-all are done shorting the homebuilders, please move onto the banks, thank you.
Did I mention Brazil? This country is a primary competitor in trade with Argentina, and Argentina is getting its butt kicked. Brazils real has been depreciating against the U.S. dollar, which incidentally the Argentinean peso is now pegged one for one. OUCH!
Anyway, the liquidity crisis is happening here at home first, and since the U.S. dollar has become the defacto standard, look for the rest of the world to suffer. The only thing that stores value are tangible items, and gold is the first thing that comes to my mind, and the minds of a lot of other people in other countries around the globe.
Gold is universal, and there’s nowhere to hide!
Regards
Frank P. |
