August 11, 2008

Dollar Rally??


I just read this article on Bloomberg that talks about how, even though, the FED has lowered interest rates banks have given out fewer loans and have further tightened their lending standards. I found this great cartoon which I totally agree with, I'm not sure why people think the Dollar is going to rally. I would love to see the Fundamentals behind this logic. Is it the rising unemployment?, the potential war between Russia and Georgia that could effect some oil pipelins?, perhaps it is the fact that the FED is again hinting at cutting interest rates because banks are being tight fisted.

All of those reasons are why the dollar is not a good bet. Good luck out there in Currency land remember to use low leverage and be patient, fundamentals ultimately rule the day.

1 comment:

  1. I was amazed that the concern for the pipeline in Georgia had not shown itself in the market even though one them was turned off as a precaution.

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