Can anyone plz elucidate a little ??? Plz something other than … Asians trying to save their asses and Paulson/Bernanke theory on keeping the dollar strong ???
Maybe it is the Europeans trying to save their a**s by buying Treasuries?
Rest of the world looks like it’s collapsing along with the US, so future economic growth is in doubt elsewhere. People start selling other currencies but are not sure where to put stuff. Also probably a rush to safety. That traditionally means US treasuries (though people are probably trying to think of other alternatives). So people need to buy dollars to get into those.
If you say that “Europeans are buying Treasuries”, doesn’t it mean that they are buying European Sovereign Bills? That might explain Euro going strong though.
surprised me too (thought for sure the outlook for inflation would push the $$ down post-bailout). although… i’d tend to agree w/ some of the above posters. its not that the dollar is stronger, its that other currencies (ie EUR) is weaker. at least thats the theory.
US’s sh!t pile is nicer than Europe’s sh!t pile.
bchadwick Wrote: ------------------------------------------------------- > Rest of the world looks like it’s collapsing along > with the US, so future economic growth is in doubt > elsewhere. People start selling other currencies > but are not sure where to put stuff. > > Also probably a rush to safety. That > traditionally means US treasuries (though people > are probably trying to think of other > alternatives). So people need to buy dollars to > get into those. that means … the next uptrend in commodities … or is it, " I want return of my capital " not that " I want return on my capital " … people investing in treasury must be thinking that right now as real yield is negative …
b/c oil and other commodities are down
We acted first to shore up our system, they acted second now there paying for it because there recovery is thought to be delayed relative to ours. My 2.
flight to safety indeed.man,its good to be king!
NewCanaan Wrote: ------------------------------------------------------- > b/c oil and other commodities are down The above seems to make sense if the premise is true too.
Anupamjain, I meant US Treasuries
it’s not. it’s just that the other currencies have come down to its economic level. now ATBE, the dollar looks pretty good.
Aha, at last the grass is not so green on the other side
I dont believe in USD at this time … with the hyper-printing coming in next 2 weeks … the steam sure looks fading … anyone with me on this
it was funny because people actually bought into the “delinking” theory. Now it’s been proven BS.
Well, I was never into short term financial delinking, but I think there could still be be some delinking of economic fundamentals.
Also, according to Macroman, Trichet acknowledged downside risk to the euro zone has increased sharply and the long awaited Eurozone rate cut may be on the horizon in the near future. Of course, as we all know, lowering rates lowers asset values and lowers currency values as global investors move into assets of countries that offer higher yields.
Well I’m obviously the dummy of the forum because I just finished shorting or hedging every last one of my private clients AGAINST this - I’m guessing - methane powered currency. And we all know where methane comes from [bs]. Willy