The dollar has been getting the benefit of flight to safety flows as the current “credit crisis” has unfolded, and it will probably continue to have underlying support for many months to come as auditors and traders wrestle with the problem of assigning prices to paper for which there is no bid, only offers. As uncertainty waxes, the dollar will be stable, or at least not crash.
As uncertainty wanes, the dollar will embark on a long journey downward. After all, the credit crisis originated in the U.S., and the U.S. economy and the U.S. dollar will have to pay the price.
Subscribe to:
Post Comments (Atom)
Post a Comment