The free falling of USD is still going on well, it seems... with Yen and Swiss Franc making new high against USD... When will USD launch a mini rally before diving again, I dunno, but the 'worthlessness' of USD on a fundamental basis is dangerous to be underestimated, so I won't bet against this... Longer term, the value of currency is basically a reflection of its economic fundamentals and health...
The Fed is now formulating a really *BIG* BAILOUT plan, nationalising the mortgage market, so much for capitalism, the market system for the US is running exactly like 'capitalism for profit, socialism for risks and losses'... With Citigroup dumping those worthless junk mortgages to GSEs like FannieMae, FreddieMac (which are government sponsored entities that just had the mortage credit limit raised just for this purpose, they are really a bunch of criminals) .. this is the first step for the big bailout with the US taxpayers ultimately footing the bill when those GSEs eventually failed, and they will (of course, we will be sharing this bill indirectly too)....
Right now, we are still in the crisis phase of the capitalistic cycle, what will likely follow is depression phrase (or deep recession).. What kind of a beast we will see during the depression phase is still uncertain though, but most likely it will be a mixture of pronounced inflation and deflation on different asset classes...
[ 本帖最後由 hardcat 於 2008-3-7 08:18 編輯 ]
If you don't trust gold, do you trust the logic of taking a pine tree, worth $4,000-$5,000, cutting it up, turning it into pulp, putting some ink on it and then calling it one billion dollars?
