The next bubble will be in the stock market, no where else for the money to go. Europe is in much worst shape then the US with the credit bubble. They were the ones buying all of this subprime crap anyway since around 2003. Them and the Chicoms. John
That will take a Clinton in the white house, remember under Clinton we had a soaring stock market and a soaring dollar, takl about wealth creation. Under Bush the dollar has been in a steady down trend for the last 7 years, market is about were it was when he took office, I say the Bush years is a wash.
Good for exporters and the Dow 30 stocks especially. Cheap dollar is partially fueling the rally we have seen since 2002.
Once the carry trade unwinds again (probably late December / early January) you will see a short, sharp rise in the USD against most currencies (not the yen though). This will be a purely technical, temporary move before the dollar starts it's real collapse throughout 2008. This carry unwind spike will be the next and probably last opportunity for you Yankees to throw your soon-to-be-mickey-mouse currency out of the window and move into gold, CHF and Singapore Dollars. I suggest you take it.
Comment only: When the dollar is down, it takes more dollars in the market to basically stay even, so therefore the market can go up because of needing more dollars. Now it takes more $$'s to buy gold, so the price of gold goes up, dollar down. Makes sense to some, doesn't to others. Don
I would have thought this was painfully obvious to anyone that successfully completed high-school algebra. Another note: people seem to conveniently forget about yesterday's news. You know all those USD reserves China has been accumulating?? I see the same people on here that 3 months ago were talking about how China was going to buy the US not even realize that we are in inflating those USD reserves China has into nothingness. You think this is an accident?!?!?!??!1111!!!omg!!??@! Edit: Give Bernanke some credit. Most of the market action we are seeing, be it commodities, forex or equities, is by design. The economy is a complex machine; lots of moving parts. For anyone at anytime to think one measure, be it inflation, USD index, the DOW index, prime rate, etc., will be the undoing of the US economy is juvenile. Regards,
I agree, I'm still amazed to see people argue over this. The market is pretty much flat in real terms for the last 5 years or so.
Equity markets remain "in-denial" regarding the ultimate effects of the lower US dollar. Really??? What a confidence! How about huge part of the globe, which had been shut-off from the rest of the world until like 20 years ago, in productive mode???? I guess you are absolutely sure it has nothing to do with it. Besides other things. I love the statement "stock market in denial"