The fact is that the dollar is mud. Interest rates have been to low for a long time and all the cuts in interest rates cause even more mal investment. The real problem has just started though. As soon as the Fed stops slashing rates easy money will go and along with it peoples ability to get mortgages. Easy money has kept the US economy going, borrowing more to cover the shot term. Also as the dollar slides Arab nations that used to peg their currencies to the dollar are switching to the Euro. If you dont need a dollar to buy oil why on earth would you want one? Its going to get a battering on the foreign exchange markets over the next few months I predict.
On a side note, oil jumped $10 in a day, and gold $20 an ounce. I think when the markets open Monday nothing is going to distract for people realizing that the market is in a massive mess, despite what the news might tell you which has been bolloks for the last few years. Good time for gold
Last edited by Onidax (2008-06-07 02:51:53)