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 : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Amelia Carhartt who wrote (781)	8/15/2007 9:34:11 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 71456

i feel your pain. elect me for president, and i'll deliver the answer. <g> honey, its an interregnum now (only our friend uses that fricken word). patients particularly in ER conditions must be suffered.

To: Amelia Carhartt who wrote (781)	8/15/2007 11:14:23 PM
From: Real Man	Read Replies (1) \| Respond to of 71456

The dollar index is mostly Euro. The Yen is up nicely. I guess there is an answer to that question - when all the dollar spec. shorts cover, or when our tough uncle Ben succumbs to WS pressure and starts printing and cutting. He is in dollar support mode - no printing since May, no cutting either. Fear in emerging markets and European banks is also contributing to the dollar rise. This is weird, since it is caused by US mortgage troubles. So - Euro rates are lower, and they really injected a lot of liquidity. Thus, Euro is down, and the dollar index is down. Will they cut more than US? If they do, Euro will be under pressure, and the dollar index will rise for a while. Euro is not any better than dollar, it just rose cause it became a second World currency.

To: Amelia Carhartt who wrote (781)	8/16/2007 2:35:39 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 71456

The U.S. simply exported the crisis to Europe: marketwatch.com In other words - we don't have the dollars you are looking for, go print some for us. ECB reportedly weighs dollar swap with Fed EU, Japanese central banks add funds to banking system LONDON (MarketWatch) -- The European Central Bank on Monday injected another 47.5 billion euros ($65 billion) in loans into the banking system and is reportedly in talks with the U.S. Federal Reserve on a currency swap, so it can provide dollars to European banks struggling to meet money-market needs. Should the ECB and Fed agree on such a swap, the Frankfurt-based central bank would exchange euros or other currencies it holds for dollars. The ECB and the Fed would then unwind the trade after a fixed term -- say 30 days, as done in the aftermath of the Sept. 11 terrorist attacks -- and the ECB would pay a small amount extra to reflect the 1.25 percentage point gap in the central banks' interest rates. The ECB, which last week pumped more than 150 billion euros into the European banking system, is reportedly seeking out dollars because of difficulties that European banks are having with funds invested in asset-backed securities, according to several British media reports. BNP Paribas (FR:013110: news, chart, profile) , one of the largest banks in France, said last Thursday that it would stop valuing three asset-backed securities funds while suspending investor withdrawals. U.S. subprime-mortgage woes, the company said, led to a "complete evaporation of liquidity" -- a notable sign of how housing market troubles in the world's biggest economy are rippling across the globe. Other asset-backed securities funds from Union Investment, Frankfurt Trust and WestLB Mellon Asset Management have also been halted. In addition to the halting of those funds, there are European money-market funds -- so-called "enhanced" money-market funds -- that have investment exposure to the asset-backed securities sector. According to data compiled by Morningstar, there are more than 500 of enhanced money market funds available in Europe, though not all are invested in asset-backed securities. More than 25% have declined in value over the last month. AXA (AXA: 37.51, -1.35, -3.5%) , the French insurance giant, offered to cash investors out of two of their funds. Some asset-backed securities contain securities that package subprime mortgages -- loans to less creditworthy borrowers that have shown an upturn in defaults on the heels of higher U.S. interest rates and stagnation in house prices. Other investments in the asset-backed securities arena have taken a hit as well, sending the value of funds invested in these securities sharply lower. ECB, Fed actions Both the European Central Bank and the Fed on Monday issued more funding to markets, but neither gave as much as lenders requested. On Monday, the ECB said it issued 47.5 billion euros at a rate of 4.07%, out of bids worth 84.5 billion euros. It said in a statement that "money market conditions are normalizing." The Federal Reserve issued $2 billion out of the $52.8 billion that banks requested. Also overnight, the Bank of Japan added 600 billion yen ($5.07 billion) to markets. Steve Goldstein is MarketWatch's London bureau chief. >>>>>>>>>>>>>>>>> And much happens simply for tech reasons - charts break down, traders try to liquidate positions into no market (see Austral Dollar and Kiwi which crash like internet-stocks) Pac-Rim currencies are giving up the ghost.