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To: Spekulatius who wrote (98906)	5/2/2001 10:46:54 AM
From: oldirtybastard	Read Replies (3) \| Respond to of 436258

The US$ reacts favorable to interest rate and inflation. This sounds strange - my explanation is that the US$ is not driven by real interest rate differentials, but by speculation , preferably in NASADQ stocks. So printing more money makes the US$ more valueable because it helps the NASDAQ stocks. This sounds clownish and it is, but I think the incoming speculation money stabilizes the US$, not the fundamentals of the US economy. If the US$ cracks, the NASDAQ will fail as well and then the speculator will have currency losses on top of share prices losses... truth is stranger than fiction, that actually makes a lot of sense...if you want to play in the biggest casino in the world, you need the right chips -ng-

To: Spekulatius who wrote (98906)	5/2/2001 3:54:12 PM
From: pater tenebrarum	Respond to of 436258

i'm not so sure if there's a connection between share prices and the currency. to wit: after Japan's bubble broke, and the economy went into the toilet, the Yen continued to blast higher for another 5 years. the 70% plunge in the NAZ didn't really damage the frizzlebun either. longer term i think much of the blind faith that now rules in the markets will be severely tested...especially w.r.t. the power of bureaucrats to fix broken bubbles.