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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (92250)	1/2/2009 4:47:44 PM
From: Sr K	Read Replies (1) \| Respond to of 116555

>>So far is has been << Did you ever notice the Preview/Spellcheck? box?

To: koan who wrote (92250)	1/2/2009 6:16:41 PM
From: Little Joe	Read Replies (1) \| Respond to of 116555

Watch the charts and the questions will be answered. But use close stops Little joe

To: koan who wrote (92250)	1/2/2009 7:45:47 PM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 116555

It doesn't really matter (for now) how the dollar will react if you are an American. More than likely the following will occur: The dollar will buy more goods for each unit in the U.S. for the time being i.e. a house, a television, a car, a haircut, pizza, milk, etc... The dollar will buy less goods (in time) per unit for goods abroad. This will happen because our recession/recovery is ultimately more severe/less robust. A possible exception to this scenario is if Obama can change the terms of trade quickly enough by reducing our dependence on oil. This would have a significant impact on our current account deficit when the next energy bull market resumes. Another exception which I am eyeing closely is a disintegration of the EU and hence a major collapse of the Euro. I think the Euro is a fantastic short at these levels. Anybody who thinks I am wrong you can bookmark this and if I am proven wrong in the next 6 months, I won't post here for 3 months. You will do the same if you are wrong. The impetus is that risk spreads are blowing out for certain sovereigns in Europe (Greece, Spain, etc.). If the recession is long enough and the ECB stubborn enough (it already appears they are), the demise of the dollar may be saved for another cycle...