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To: Haim R. Branisteanu who wrote (29348)	1/26/2002 12:02:33 AM
From: At_The_Ask	Read Replies (1) \| Respond to of 209892

I think it's just a flight to "safety" of the USD. The clownbuck is the "gold standard", at least until it's not.

To: Haim R. Branisteanu who wrote (29348)	1/29/2002 5:12:12 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 209892

Haim, no doubt future earnings reports by US based multinationals will contain references to the strong dollar once again. i'm surprised there hasn't been more of an outcry already, but with manufacturing only employing 14% of the US work force these days, there appears to be no viable political constituency favoring a weaker dollar. as a result the manufacturing base continues to be hollowed out at lightning speed. not a day passes without an announcement by a large company about moving manufacturing facilities away from the US to low wage/collapsing currency countries. a vicious cycle. Doug Noland may be on the right track - it's speculative hot money that flows into the dollar to play the many avenues for speculation in the US. e.g. the 'yield spread' trade involving short term financing to buy long term mortgage bonds is in full swing...that has become a huge 'free lunch' market.