Now that the big investors are buying foreign currency, how long until the US dollar drops like a rock?
Thanks to Bush's deficit spending?
- LuvDylanLv 51 decade agoFavorite Answer
My bet is the banking industry will continue to shore up the currency until the next election, and blame everything on the Dems .... so it will be a roller coaster until Nov 08 and then the bottom will drop out of the good ole USA..
Here's some official info...
On August 9-10, the European Central Bank, the Bank of Japan, the Federal Reserve, plus the central banks of Australia, Norway, Switzerland, and other countries “injected” the equivalent about a third of a trillion dollars ($325 billion) into the money systems of the world. The Bank of Japan handed out a dramatic ¥ 1 trillion, about $8.5 billion. The European Central Bank showed signs of panic, or of realism, by spewing out about € 160 billion over two days. Their goal was to stave off a spreading panic at bond trading desks and in the capital markets of the world about junk bonds, collateralized debt obligations (CDOS), mortgage backed securities, and other paper debt instruments. At about 9 AM on Friday August 10, the Chicago futures markets suggested that the Dow Jones Industrial average would open down about 190 points. That meant the potential for spreading stock market panic, with the DJIA closing down 1,000 to 2,000 points or more by the end of the day, quite possibly pitching more banks and hedge funds into bankruptcy.
Such an event would also tend to awaken the US middle class to the fact that their 401 (K) and IRA pension plans were being liquidated.
(Author added: Pay attention here....this is why you can't control your retirement funds ..... the banking industry uses it for their losses)
This would make the financial crisis a political crisis as well, and perhaps stoke the fires of impeachment. Helicopter Ben therefore followed his predecessor, Bubbles Greenspan, on the path of bailout, although on a larger scale than what Greenspan had ever attempted in public. Bernanke and the New York Fed bought up $38 billion of toxic mortgage-backed securities from the principal hyenas of Wall Street -- led, we can be sure, by Goldman Sachs, Bear Stearns, Lehman Brothers, J.P. Morgan Chase, Merrill Lynch, and Citibank. For bailout purposes, the banks were given a sweetheart interest rate, just 4%, less than the 5.25% target Fed funds rate used for interbank lending, and much less than the 6.25% the Fed requires from banks coming to its own discount window under normal circumstances. The $38 billion, injected in three doses during the course of the day, in addition to other Fed measures, was almost enough to prop the market up for eight hours – the Dow closed with a loss of 31 points. So the central banks will need to provide more fixes, sooner rather than later.
WAKE UP SHEEPLE!!!!! You've been robbed, and so have your children and grand-children! First via a huge deficit and now they are taking your "guaranteed" retirement, too.Source(s): Sad but true. National ID next year... Amero dollar soon after. http://news.com.com/FAQ%20How%20Real%20ID%20will%2... http://www.911truth.org/
- Anonymous1 decade ago
surprising it gained a bit on the euro recently. I was amazed on my trip to the grand canyon. You couldnt hike 1/4 mile without hearing german or french. I think in a way a weak dollar isnt a bad thing. Think about all the not so rich europeans that can now come to their equivalent of a mexican vacation for us.
Ultimately what will happen is we will get more factories as the dollar weakens. Thats one of the principle reasons we are trying to cause china to value their currency in a fair way.
- HollisLv 45 years ago
big investors buying foreign currency long dollar drops rock
- SheilaLv 45 years ago
It has something to do with the foreign trading policy. The influx of mass productions and the degrading demands, widely affects the international currencies trend.
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- Anonymous1 decade ago
Stocks go up and stocks go down. This is really all you need to know about the economic system. But isn't it nice to be able to blame the president for something that he doesn't control? Tell me when the economic outlook is good do you work as hard to point out that it is in spite of the president? As long as you start from your assumption that President Bush is evil then you can blame a decrease in lighting bug population on him as well. But tell me are you willing to take the same hard look at a Democrat? I somehow doubt it.
- ConanLv 41 decade ago
Until Chevy commercial stop saying "like a Rock" ;-)
- Anonymous1 decade ago
To Sparhawk:I really feel
sorry for you. When you know
the truth, you will know just
how deceived you have been.