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

To: RockyBalboa who wrote (28941)	6/2/2010 2:02:57 PM
From: ggersh	Respond to of 71445

Why can't they just say Pound, Zero doomed to failure! Geezus! -vbg-

To: RockyBalboa who wrote (28941)	6/2/2010 3:41:39 PM
From: ggersh	Respond to of 71445

By Catarina Saraiva June 2 (Bloomberg) -- Investors should sell the pound versus the Swiss franc as concern the British government's fiscal policy could cause Europe's debt crisis to spread to the U.K., according to Morgan Stanley. The firm recommends selling or shorting the British currency with a target of 1.55 francs, strategists including London-based Stephen Hull wrote in a note to clients. A short is a bet the price of an asset will fall. The U.K.'s "large" fiscal deficit could lead the country to a fiscal crisis similar to that of some countries in mainland Europe, the note said. "If fiscal policy isn't tightened enough in the forthcoming budget, the market is likely to become increasingly concerned about the U.K.'s fiscal position," the note said. The pound represents 10 percent of the firm's foreign- exchange portfolio, and the recommendation will increase the short position in the currency to 30 percent, the portfolio's largest, according to the note. The British currency exchanged hands at 1.6925 francs at 12:30 p.m. in New York.