Posted on 10/15/2009 6:01:39 AM PDT by Strategy
LONDON (AFP) - The dollar hit a 14-month low against the euro Thursday on fears that US interest rates would remain super-low for a long time and as a stock market rally sparked appetite for riskier assets, traders said.
(Excerpt) Read more at ca.news.yahoo.com ...
Ping!
Should I demand to be paid in Euros?
Am I wrong in thinking the gubmint wants a weak dollar? Doesn’t it a)make their debts cheaper in real terms and b)make the stock market rise, which will please ignorant citizens?
Obama signed on to this at the G-8 while everyone was watching Michelle fly to Copanhagen.
I believe this has been the Fed's plan ever since GWB was elected. Massive debt is easier to pay back if you are paying it back in highly inflated dollars. I think this is what they are trying to achieve. The market will rise some, likely having more to do with a leaner workforce, but it will be temporary because sooner or later China and others will cease to buy our debt. To some extent this is already happening as evidenced by the last two bond sales. At some point interest rates will have to rise and the market will fall as a result because rising interest rates mean it is more expensive to do business. Thus, profit and profit margins will be shrink.
“Am I wrong in thinking the gubmint wants a weak dollar? Doesn’t it a)make their debts cheaper in real terms and b)make the stock market rise, which will please ignorant citizens?”
That pretty much nails it.
Just in time for my trip to Europe :(
The stock market rise is on expected record earnings in Corp reports.
You see when you layoff millions of Americans...your human resources cost go WAAAY down...PROFITS go wAAAy UP.
Your misery is the stock markets FRIEND.
Really? I haven’t seen that reported. Record profits? I’m skeptical. Can you cite any reference for that?
You haven’t listened to the reports of expected reord profits which INCLUDES record BONUSES.
The msm is focusing on the record bonuses....get rid of those employees and you get a BIIIGGG bonus.
I learned from first hand experience that corporations are on all fours with government--spending someone else's money like it's someone else's money, avoiding accountability, rewarding slick liars, colluding, spending their budgets at the last minute so they can ask for more, budgets being doled out as a form of patronage, mid level execs hiring people and creating positions to create feifdoms and increase their power and influence, etc.
What we need in America are real jobs that produce real products, useful products that people want. We need jobs that require actual skill and enterprise.
But no, I have seen no reports of “record profits.”
I watch the biz reports..Corps are getting ready to release their quarterly reports. The conventional wisdom is that the WS types are wxpecting reord profits (as evidenced by GS, and smaller than expected loss by Citi). When the bonuses were announced by BOA, the reporter from Fox called them asking if they were hiring. They said they are ALWAYS hiring.
Historically, the Market always goes up when the “little” guys are suffering (unemployment) It is a given, when unemployment is high, the overhead of Business is declining. (Econ 101)
JPM JUST ANNOUNCED 3.6 BILLION PROFIT. oops cap lock on. They to their credit made it honestly. Paid back all BO funds which they didn’t want to begin with.
In every large organization I’ve ever been a part of, about half of the employees do 90% of the work. The rest, in my opinion, are excess baggage. Should it be a government organization, I refer to it as “employed welfare.”
The only record profits I have heard of recently are in the financial sector such as Merrill-Lynch and Goldman Sachs, which is coming from your taxpayer dollars via bailouts. Their profits = your taxes.
There are no other “record” profits or bonuses.
Merril lynch does not exists and is part of Bank of America.
It is Goldman Sachs and JP Morgan that made record profits.
Both companies have repaid the govt. plus about 20%.
JP Morgan totally got out of subprime in 2006 and is one of the best banks ever.
Thanks for correcting my error.
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