2 dollars for 1 euro within weeks if not days

Uncle_Ho · Feb 27, 2008

I can't believe dollar hit a 40+ year low vs. the world. Just keep printing and printing. You have to think 10-20 years down the line this should turn around. Is anyone putting on longer term plays on the NYBOT US dollar index?

Reaver · Feb 27, 2008

Quote from Ivanovich:

Mars. Isn't it obvious from the high quality, informative post?

You kill me Ivanovich.

peilthetraveler · Feb 27, 2008

Quote from Vinny1:

Not good if you are looking to travel to Europe or buy property in Europe.

European property is so overvalued its not even funny. Why on earth would anyone spend 400k Euros for a 200 year old house that is drafty and damp is beyond me. Even the new homes there look old. In 5 to 10 years I bet the euro will be even with the dollar. The average person can not buy a home there and their real estate is overvalued because of that. Europe is right behind us and so is the rest of the world in this economy.

SwingOutOn5 · Feb 27, 2008

Quote from Jayford:

You do understand that a cut will hammer the $ even more don't you?

The FED's job is supposed to be price stability, and providing liquidity in extreme circumstances (ie 9-11).

The FED is NOT supposed to prop up Wall St or even the economy except in extreme cases (that is supposed to take care of itself. It is cyclical by nature).

It is just in the past few years that the FED has been involved in avoiding recession at all costs. Its going to be a disaster in the long run. The longer you put off an inevitable recession, which will clean out excesses and inefficiencies, the nastier the eventual downturn will be. Notice how dropping rates is having little effect now. Its propping stocks, but doing nothing for the credit crunch. There is really little the FED CAN do at this point. Its all political.

I hate the FED in its current form. Where is Volker?

Actually, the Fed's purpose is to print money for Congress.

http://video.google.com/videoplay?docid=5232639329002339531

SwingOutOn5 · Feb 27, 2008

Quote from peilthetraveler:

In 5 to 10 years I bet the euro will be even with the dollar.

This is doubtful. Many countries are diversifying away from the buck as their main foreign currency. The euro looks the most stable, at the moment. We may not see a return of the buck until 1.) The Amero comes out, or 2.) we have a real, full scale war that is declared by congress whereby the entire American war machine can get involved.

SwingOutOn5 · Feb 27, 2008

Quote from thesharpone:

where in the world are you posting from, you started this thread at 3:53 am Eastern Time

Hahaha, welcome to forex world lol.

I didn't crash out until 9AM! (just woke up, btw)

crgarcia · Feb 27, 2008

Quote from Vinny1:

Not good if you are looking to travel to Europe or buy property in Europe.

Why would America care about the Europeans?

The important thing is that America exports are more competitive.

SwingOutOn5 · Feb 27, 2008

Quote from crgarcia:

Why would America care about the Europeans?

The important thing is that America exports are more competitive.

I'd like for my trading screens and tv's to be reasonably priced, though!

Matt8200 · Feb 27, 2008

Quote from Jayford:

You do understand that a cut will hammer the $ even more don't you?

You do understand this is exactly what the Fed plans to do don't you?

Quote from crgarcia:

A devalued dollar is actually good for the US economy.

Only a fool would believe this, at this rate it won't be long that it cost the Fed more money to print dollars than they are actually worth.

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eusdaiki · Feb 27, 2008

Quote from crgarcia:

A devalued dollar is actually good for the US economy.

As long as it doesn't get out of hand...

If the big USD holders start liquidating their assets [moving to other currencies] then the supply of USD would be out of the FED's hands... and into the hands of foreing devils...