Chronicles Of Depression 2.0: #156

Dollar Falls to Record Versus Euro; Credit Woes May Damp Growth

July 15 (Bloomberg) — The dollar declined to a record low against the euro on speculation Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson will say credit- market losses are hurting U.S. economic growth.

The currency also weakened to the lowest level in more than a month against the Japanese yen and to a 25-year low versus the Australian dollar on concern confidence in the debt of Fannie Mae and Freddie Mac will diminish even after the U.S. government pledged support for the two-largest buyers of home loans. The pound surpassed $2 for the first time since July 1 after U.K. inflation quickened to the fastest pace in at least 11 years.

“The markets are reacting negatively to the renewed credit crisis in the U.S. and that’s hurting the dollar across the board,” said Roberto Mialich, a Milan-based currency strategist at Unicredit Markets & Investment Banking, a unit of Italy’s largest lender. “The market is speculating that Bernanke will offer a gloomy outlook for the U.S. economy.”

Emphasis added by me.

And:

The dollar fell to $1.6038 per euro, the lowest since the euro’s inception in 1999, and was at $1.6006 as of 7:22 a.m. in New York, from $1.5908 yesterday.

Emphasis added by me.

Pay attention here:

“For the dollar to drop abruptly from here is unwarranted,” said Robert Minikin, a senior currency strategist at Standard Chartered Plc. “We don’t think the U.S. economy, or the financial system, is uniquely vulnerable. We see a lot of negative news on the U.K. and the euro zone economies. The balance of risks is tilted towards a recovery.”

The man’s an eejit. If you have money under his care, evacuate it ASAP.

See the future, from March 7, 2008: Future Headlines Right Here, Right Now

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Explore posts in the same categories: C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Self-Defense, Depression 2.0

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