MSN: The dollar’s perfect storm worsens
As usual, it is waaayy past my bedtime and I’m STILL groggy from this cold, so what do I do? Post another article of course!
On my way to bed, I just thought I’d point out a good article on MSN Money:
What is the ECB going to do? Raise rates? Not such an easy call. I’m learning that it is important distinguish what monetary policymakers SHOULD be doing and what they actually WILL do. I think the ECB SHOULD raise rates, just like I thought the Fed should have raised rates. Will they? I doubt it. The credit crunch is too severe and I think fears of a financial market meltdown trump inflation fears. Plus, factors that are weakening the USD are strengthening the EUR, so inflation is the lessor of evils in Eurozone in my opinion. I think ECB stays where they are at 4%. The Fed SHOULD hold rates, but I’ve lost all faith in the fed and they are just puppets for Wall Street.
ECB holds at 4%
Fed drops to 4%
Aside from this slight disagreement, I agree with his analysis of the fall out, i.e. USD falls, EUR gains, OIL rises, stocks rally (stocks always rally) temporarily only to fall hard, gold rises. Stocks that I think will do well (although I’m no investor) longer term will be those associated with “onshoring“.