LOOMING DOLLAR CRISIS

[Guest]

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Rolo wrote:

ehehehee..yeah, I talk a lot, but do I really say anything?

Is that a rhetorical question?

 

[Rolo]

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greg wrote:

Is that a rhetorical question?

Why yes. Yes it was.

 

[coolhand]

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http://www.iht.com/articles/2005/02/24/opinion/eddollar.html

http://finance.news.com.au/story/0,10166,12364649-462,00.html

And the beat continues.

 

[neirbod]

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Thanks for the good info, Coolhand. I for one am beginning to get nervous about the potential for a dollar crisis and its effect on the markets. At least, I am starting to think that market has limited upside potential relative to a larger downside potential. The scary part is that, if it happens, it could happen very quickly.

Here is another interesting read.:
http://www.larouchepub.com/other/2005/3208dollar_crisis.html

One quote in particular from the above article caught my attention:
"Below the favorable surface [of the economy], there are as dangerous and intractable circumstances as I can remember.... Nothing in our experience is comparable," warned the former Federal Reserve chairman in a Feb. 11 [2005] speech at the Stanford University Center for Economic Research conference.

The fact that the "smart money"is also nervous (based on Tom's recent daily posts) doesn't make me feel great either.

I'm not running for the hills just yet, but I am considering keeping a good portion of my funds in G for a while until things shake out. I am also keeping a close eye on the dollar.

Dave

 

[coolhand]

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neirbod wrote:

At least, I am starting to think that market has limited upside potential relative to a larger downside potential. The very scary part is that, if it happens, it could happen very quickly.

If foreign central banks were to start diversifying away from US treasuries I believe it would get ugly pretty quick. I'm surelots of traders have their fingers on the trigger.

Not running for the hills just yet, but I am considering keeping a good portion of my funds in G for a while until things shake out.

That's my strategy at the moment as well.