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  #1  
Old 09-10-2008, 02:43 PM
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Question Why does the dollar continue to go UP if Fannie and Freddie are diluting you're money

I dont completely understand can someone explain it to me
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Old 09-10-2008, 02:47 PM
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The Euro isn't worth as much as people think. The carry trade (and at 2%, the dollar is a carry trade currency) breaks down in a liquidity crunch.

This is why the Yen hasn't lost value versus the dollar while the Euro and Pound have crashed. It is also a carry trade currency and is benefiting.
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Old 09-10-2008, 02:47 PM
H.R. Paperstacks H.R. Paperstacks is offline
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Maybe we aren't going up, maybe everyone else is coming down.
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Old 09-10-2008, 03:19 PM
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Quote:
Originally Posted by djerry81 View Post
Maybe we aren't going up, maybe everyone else is coming down.
I think that's a fair assessment.
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Old 09-10-2008, 03:57 PM
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Perhaps the bailout was already "priced in" -- not like we didn't all see it coming.
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Old 09-11-2008, 10:24 AM
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I think the commodities and equitites markets are being manipulated to force people out of these markets and back to 'safety' in the US Treasuries.

You can only buy US Treasuries with US dollars...
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Old 09-11-2008, 11:42 AM
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There's also the exchange stabilization fund; recall that the dollar is "valued" relative to other currencies via the USDX.
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Old 09-12-2008, 09:39 AM
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Quote:
The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.

"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange."


The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained.

"We already have $3 trillion of debt, as far as the U.S. government is concerned. These debt figures across the U.S. economy are rising very sharply."

When the government can no longer pass the United States' "immense debt" on to taxpayers, it will turn to the holders of U.S. dollars, leading to the eventual downfall of the currency, Hennecke said.

"Definitely, it (the dollar) is not a safe place to be invested in, as real inflation is closer to 10 or 11 percent than the actual inflation numbers given by the U.S. government," Hennecke said on "Worldwide Exchange".


Investors should avoid exposure to debt and stay away from leveraging on any investment or asset, including property, Hennecke advised, adding that "banks have been too highly leveraged in the past, private households, everybody."

Hennecke's stock allocations are mainly Asian-based, especially in the Chinese market as the country's government has a large amount of cash and the macroeconomics are fundamentally strong.

He also suggested investing in gold, despite the recent fall in price.
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URL: http://www.cnbc.com/id/26656750/site/14081545/
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Old 09-17-2008, 12:01 PM
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United States dollar is as strength as ever
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Old 09-17-2008, 05:16 PM
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I'm taking that last advice. Fun times ahead.
I wouldn't take his advice on the Chinese stock market right now. The free fall has been going on for weeks now.
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