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Oh I know it has been brutal for those that were long, however it was good for manufacturers who were selling to Europe! As long as they weren't buy RM abroad... Also the begining of the Euro was a crush fest the other way!
Major happenings this week. Where is the economy headed?
- Thread starter Big Rick Rock
- Start date
Oh I know it has been brutal for those that were long, however it was good for manufacturers who were selling to Europe! As long as they weren't buy RM abroad... Also the begining of the Euro was a crush fest the other way!
Big Rick Rock
istrator
I hope the Dollar makes some gains over the next few months. The weak dollar hurt a nigga like me.
gotmilk
New member
The dollar does not strengthen based on oil futures. The FED can strengthen the dollar at any time. However, if you happened to be watching CNBC this morning, they stated publicly that they will not....which again shows how ignorant and arrogant Bush and his appointees have become.
The dollar should have never been devalued for such a long period of time.
Big Rick Rock
istrator
I read about the relation between Oil prices and the Dollar on the paper today. Seemed to make sense.
Most people I talk to say the FED has been a step behind this whole time.
Razorguns
Well-known member
This kids is why you don't jump to conclusions:
"NEW YORK (CNNMoney.com) -- Oil prices jumped $6 a barrel Wednesday - staging the second largest one-day surge on record - as Wall Street's precipitous decline sent investors scrambling to find other places to park their money."
Oil marks second largest one day price jump - Sep. 17, 2008
You have money -- where u gonna put it? banks? hedge funds? treasuries? OIL! And with high demand, prices soar. Told ya with every action is an opposite reaction.
r
"NEW YORK (CNNMoney.com) -- Oil prices jumped $6 a barrel Wednesday - staging the second largest one-day surge on record - as Wall Street's precipitous decline sent investors scrambling to find other places to park their money."
Oil marks second largest one day price jump - Sep. 17, 2008
You have money -- where u gonna put it? banks? hedge funds? treasuries? OIL! And with high demand, prices soar. Told ya with every action is an opposite reaction.
r
Look at what happened to gold today!
gotmilk
New member
It's partly true, a strong dollar does drop oil prices. However, the oil prices were also pumped by speculation and possibly trading manipulation on the futures market.
Back when the EURO to USD was around 1 to 1.314, you could still find Saudi Light Crude allocations at $67 per barrel.
Stronger dollar brings in more capital for banks, would have eliminated the cheap housing credit which is now making a mess of home mortgages, and would help pump some more investment back into our shrinking manufacturing base.
They have not been a step behind, they created this mess starting with John Snow. They fugged liquidity on purpose and you have to ask why was this intentionally done.
Devalued dollar helps exports...which is great until you realize you exported most of your manufacturing to foreign countries too.
Rich people, rich corporations and investment pools with deep money shy away from cheap currency. In turn, that makes people look for other investments than typical money market accounts, which reduces capital available at US Banks....which....WHOOOPS..is exactly what is needed now.
Flexible US Dollars drive the global market....devalued US dollars cause more investment in foreign banks and countries.
gotmilk
New member
Nope...not for piss poor rates at struggling banks.
Nope, not at over leveraged funds who cannot borrow cash if they get stuck
Nope...unless I can find short term repos...then...hmmmm
And gold and Canadian gold mining stocks too.
My favorite article from one ugly mother.....
The geopolitical fallout from the weak dollar is all around us: Terrorist Iran gets massive windfalls for its oil; ditto Venezuela under its wounded but still reigning lunatic, Hugo Chávez; Russia becomes more truculently anti-American with each uptick in the price of oil; so-called sovereign funds buy up U.S. corporate assets at fire-sale prices; China, which outsourced its monetary policy to the Fed in the mid-1990s when it tied the yuan to the greenback, now faces increasingly destabilizing inflation; and oil-lacking developing countries, many of them fledgling democracies, are being hit with potentially destabilizing economic squeezes.
The prices of oil and other commodities are surging primarily because of the weak dollar. Between mid-2003 and the beginning of 2008 oil has zoomed from $25 a barrel to almost $100. Real demand in oil didn't suddenly massively increase to justify a nearly fourfold rise in price. The best indicator of inflation is gold. In this same time period the yellow metal has zoomed from around $350 an ounce to more than $800 an ounce. More than $50 of the per-barrel price of oil today comes from inflation and the speculation that inflation induces.
r[/QUOTE]
Big Rick Rock
istrator
No matter what the economy is like. You guys keep showing up here for entertainment. Similar threads
