Dollar prepares for recovery?

Dollar prepares for recovery?
Aug 11, 2008 03:43
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	According to FT, Dollar Index performed best in recent 3 and half years last week, which made dollar rises to its highest level in recent 4 months. The dollar has raised by 5 cents against Euros, rising 6 percent compared with the lowest point last month. This news is really inspiriting. This week is a crucial moment for dollar, which will determine if dollar has ended its worst perfomance in the previous 6 years (In the previous 6 years, the dollar has been depreciating a lot). People even think that US is in its best position to recover from its economic downturn. Do you think dollar has recovered from its worst performance? What about US economy?

Aug 11, 2008 03:43

JIMMYB
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Join Date: Feb 7, 2007
Status: offline

According to FT, Dollar Index performed best in recent 3 and half years last week, which made dollar rises to its highest level in recent 4 months. The dollar has raised by 5 cents against Euros, rising 6 percent compared with the lowest point last month. This news is really inspiriting. This week is a crucial moment for dollar, which will determine if dollar has ended its worst perfomance in the previous 6 years (In the previous 6 years, the dollar has been depreciating a lot). People even think that US is in its best position to recover from its economic downturn.

Do you think dollar has recovered from its worst performance? What about US economy?

Aug 11, 2008 03:44	#1
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Note: the dollar index is to measure its value against other 6 major currencies in the world. (Source: FT).

Aug 11, 2008 14:04

GARYKINKADE
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Join Date: Jan 8, 2008
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No........ To the 1st question. This is a small "hiccup" in the long downward slope of it's international value.
No........ To the 2nd. question. The housing market has yet to bottom. Several prominent banks (Stateside) have already reorganized in order to avoid failure.
Fannie Mae and Freddie Mac had to be bailed out by their government, i.e. financed by the taxpayers.
A certain portion of the (U.S) taxpayers are in debt up to their neck with their personal finances.
We are living off of the "fumes" from the past.
This is definitely a pessimistic answer, but can't see it any other way.

Aug 13, 2008 22:11	#3
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Early last year, it's startling to look at mortgage backed Fannie Mae and Freddie Mac being pumped out at crazily faster speed than other short term papers... Now they are bailed out in a game of heads i win, tails the taxpayers loses. The restructure of bonds term could be the point that unties the knot.

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