Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (35271)	12/16/1999 1:15:00 AM
From: Les H	Respond to of 99985

Everybody else is printing money like crazy too, in the name of Y2K.

To: Lee Lichterman III who wrote (35271)	12/16/1999 12:14:00 PM
From: pater tenebrarum	Respond to of 99985

Lee, i believe i can answer your dollar question: i believe it is more an issue of Euro weakness than dollar strength. the predominantly socialist governments of the ill-conceived Euro-zone have proven beyond reasonable doubt that they are unwilling/unable to introduce any meaningful structural economic reforms. although the ECB seems so far quite disciplined (in fact, a lot more disciplined than the Fed imo), this is a millstone hanging around the Euro's neck that has (among other things) produced the current weakness. there is also an element of disappointment over the fact that not too many CB's have announced intentions to adopt the Euro as a reserve currency, which was a widespread expectation at it's launch. in addition, we see some capital flight into the dollar due to Y2K concerns, but that should reverse early next year. however, imo the tide is close to turning in favor of the Euro, at least in the ST. there is for one thing the Fed's incessant printing, as well as Europe's soaring trade surplus with the U.S. Europe's economic fundamentals are generally firming, in spite of the European governments. then there is the HK monetary authority which has recently increased it's Euro holdings, a first sign that acceptance of the Euro as a reserve currency is rising. and last but not least, Russia seems on the verge of decisively winning the Chechen war, which would remove uncertainties over Russia's stability...the geographical nearness of Russia to Europe still counts for something, and an unstable Russia will always weigh on the Euro. regards, hb