today, I learn a new word. Do we see a bubble in Dollar ? as in a Bubble in Oil, Commodities, China Equities, etc ?
A bubble means Irrational Exuberance about something. Is USD that great ?
Having said that, would wait for the parabolic rise of USD to signal the end.
As in every parabolic move, there would be a short retracement, followed by a higher move up. Look for DXY to move into 80s.
Which would be bullish for US Equities, while interestingly World Wide Equities slump, especially Asian ones.
Probably USD would rise till end Nov, much like what happened back in Autumn and Winter 2005.
By then Euro would be down to 1.3990. Gold down to 600. Good old days, or rather markets in anticipation of Deflation, not inflation.
If you are a Euro buff, or Gold Bug, dun worry, it is just a Dollar Bubble. Everything would reverse to mean eventually.
Lehman Brothers planning to sell its commercial Real Estate portfolio, but no buyer yet.
The next shoe would be commercial real estate. Banks, Financial Institutions pulling their backoffice out of America. Consumers spending less, retail big names cutting their stores.
However, the most significant thing now is not all these frills, but a change in the mindset of Americans. Gurus go on national talkshow, teaching people how to get the best out of the government, by walking away from loans, applying for credits, applying for government grants.
Americans are not using creativity or hardwork to make a living, but trying to skive a living.
Now the credit problems has spread to Alt-A mortgages, it is going to spread like fire when it becomes a fad to work away from your loan if it is in negative equities.
( much like some Californians torching their house to claim insurance).
Capitals gained by Banks would just go back to redeem the mistakes of the public at large. It is an endless pit. No amount of capital is enough. No amount of FED printing Dollars is sufficient.
Hence that is why it is a Dollar Bubble.
If you agree it is a Dollar Bubble, pls click on the Google Ads.
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