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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (2638)	12/21/2000 10:24:26 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 3536

That's why I'm sticking with my long Eurodollar positions even though they have built in a few rate cuts already Well, I would disagree with your logic about built in rate cuts. I mean, talk about easy money and you have only to look at the Euro and the low interest rates instituted by the ECB. They even had to raise rates out of fear of energy induced inflation weakening their currency as they were forced to buy dollars to pay for oil. But if the theory is that all nations will have to lower rates, I would suggest that investor money will still flow where the rates and relative safety remain highest, namely the US. I hope your right and every nation has to lower rates as that will ease the pressure on the dollar that normally occurs from Fed rates decreases. Btw, it's nice to see others agree with my view that, to borrow several well worn cliches, if the US slows to a walk, other nations will slow to a crawl. The US makes up approx 30% of global GDP. If we sneeze, every nation dependent on exporting to us will catch cold.