the dollar breaks down below 82. A run on the dollar could make a mess on the markets given the imbalance in average returns for foreign investors. Imagine being a foreigner and owning US equities for 3 years. When repatriation starts it will have a snowball effect. Then what will the Fed do? No other choice but to raise rates or suffer hyper inflation. Good Lord this could get ugly in a hurry.
Dollar burden beginning to show
Started by
2cents
, Apr 10 2007 08:22 AM
3 replies to this topic
#1
2cents
-
- Traders-Talk User
- 3,015 posts
Member
Posted 10 April 2007 - 08:22 AM
My opinion isn't worth the HTML it's written on
#2
skyymaster
-
- Traders-Talk User
- 1,443 posts
Member
Posted 10 April 2007 - 08:44 AM
the dollar breaks down below 82. A run on the dollar could make a mess on the markets given the imbalance in average returns for foreign investors. Imagine being a foreigner and owning US equities for 3 years. When repatriation starts it will have a snowball effect. Then what will the Fed do? No other choice but to raise rates or suffer hyper inflation. Good Lord this could get ugly in a hurry.
Please do not use Good Lord and Ugly in the same sentenance.
People should not be afraid of their governments. Governments should be afraid of their people.
Remember this day, men, for it will be yours for all time.
Remember this day, men, for it will be yours for all time.
#3
Trend-Shifter
-
- Traders-Talk User
- 323 posts
Member
Posted 10 April 2007 - 08:53 AM
Could be bullish if the decline is orderly.... Multi-national earnings go up, Yen carry trade in-tack, China buys equities instead of treasuries to hold down the RMB.the dollar breaks down below 82. A run on the dollar could make a mess on the markets given the imbalance in average returns for foreign investors. Imagine being a foreigner and owning US equities for 3 years. When repatriation starts it will have a snowball effect. Then what will the Fed do? No other choice but to raise rates or suffer hyper inflation. Good Lord this could get ugly in a hurry.
Only in geometry can a line go into infinity.
#4
Cirrus
-
- TT Patron+
- 5,735 posts
Member
Posted 10 April 2007 - 09:50 AM
Most expect dollar weakness. I would think many expect a retest of the 80 level. I wouldn't be surprised to see 79. I think there will be problems should the dollar drop more rapidly and solidly below the 79-80 level as that could worry even those expecting some dollar weakness. Of course, JMHO, but it's when things go beyond the realm of realistic expectations of market participants that forces there actions.
