Yes, if you think that the dollar goes weaker from here, it would be foolish to take foreign dollars and buy USD assets. I’m saying, that we are at the point in the cycle where the weak dollar cannot any longer be expected to continue its fall, and that when the shift is made, the deal is then extremely profitable.
The Canadian dollar is at par, the pound at 2, both on the extreme end of a range. That is not just a “range”, it is where common sense kicks in. Truly now, does it not ever get to the point in your mind, where spending 80 bucks on a french bottle of wine, is just plain stupid to buying a great California wine for 20 bucks? Or maybe you just are that much richer than i and can somehow taste the 60 dollar difference??
Or how about the airline company deciding what airplane to buy? Is it not the same with airbus and boeing? Does the 30% discount by buying the boeing not have any value in the making of that decision???
I kind of don’t appreciate the repeated reference using “professional”, really comes across as personal. Let me ask you a question. If I said I’d played professional foootball for 15 years, would my experience there, be no more important or valuable than that of some guy that watches games during the w/e? Or what if I served in the US Armed Forces, would that 15 yrs of experience be as easy to piss on? And it’s not like I’m asking you to take my “credentials at face value” since I’m willing to back anything I bring up, with examples and illustrations? Also, I’m the first to admit when I don’t know, don’t care, or don’t understand.
The long story about the mortgage situation, not sure what the relevance there is by the way. IMHO, you had a r/e boom fueled by excessive liquidity, that had no responsible originators since they intended on dumping the loans off on some other sucker anyway... An end to that boom is welcome, and the spectacular demise of some of these companies was probably expected the day they put the name on the building.
Professional, your posts are very informative, thanks.
This is one of the better financial threads I’ve followed here in a long while.
Thanks to you and Doughty One for carrying on an old school Free Republic discussion.
Carolyn
Re: ‘mortgage meltdown’
Isn’t it critical that poorly structured, irrational practices of loan companies like this actually GO BANKRUPT?
Isn’t that really an indicator of a healthy market?
Can’t we assume that, at least in CHina, for example, where there is NO transparency at all that such shell games exist, grow and infect the entire economic structure....such that eventually when something breaks, the whole damn thing collapses?
Supposing that the trade and account deficits are horrific and detrimental in the US (not saying it always is, but) then on the world investment stage, isn’t that risk more stable than a structure you can’t really know?