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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (5553)	3/27/2008 9:56:15 AM
From: stan_hughes	Read Replies (1) \| Respond to of 71475

Well, at least they seem to talking (fighting?) about it (i.e. the perils of playing leapfrog with the cuts) -- the Europeans seem to recognize that a race to the bottom isn't a very good plan for anybody You know what I find really interesting here -- that the prospect of the USD turning into a funding currency for the carry trade has suddenly spooked the crap out of a lot of people, even some who may previously have thought all one ever need do to stave off a recession is drop your interest rates below inflation and then wait for the expected reactionary borrowing for investment and corresponding pickup in economic activity All of a sudden the light seems to have gone on that maybe any low-rate borrowing in the US will not be reinvested inside the US this time after all, it might instead be used to fund projects somewhere else on the globe where prospective returns look better -- what a bizarre situation -- a nation without any savings being tapped for funding by speculators and transnationals Eventually that strategy would blow up too but it would be mighty ugly for US asset prices in the meantime

To: Real Man who wrote (5553)	3/27/2008 10:03:45 AM
From: RockyBalboa	Read Replies (2) \| Respond to of 71475

Hm. Treasurys should be up, but are down. Nothing works. Is the fed whoring their paper? AP Economy Sputters With 0.6 Percent Growth Thursday March 27, 9:18 am ET By Jeannine Aversa, AP Economics Writer Economy Nearly Sputtered Out at End of 2007, Probably Faring Worse Now WASHINGTON (AP) -- The economy nearly sputtered out at the end of the year and is probably faring even worse now amid continuing housing, credit and financial crises. The Commerce Department reported Thursday that gross domestic product increased at a feeble 0.6 percent annual rate in the October-to-December quarter. The reading -- unchanged from a previous estimate a month ago -- provided stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate.