Open Thread: Falling Dollar, Rising Gold, Oil, Inflation

Wednesday, September 12, 2007 | 07:30 PM

Now that the currency traders have weighed in on the Fed Cut, perhaps a rate cut is not the salve many are hoping / begging for.

With Oil breaking $80 today, and Gold scoring higher, the question before the house is as follows: What are the repercussions of more rate cuts? If the Fed does take rates down to 4.25%, or even 4.0%, what happens to the following:

-US Dollar, Euro, Yen

-Oil

-US Treasuries

-Gold

-Real Estate (global)

-US Equity Markets

-Soft commodities (Wheat, Corn, etc.)

Two articles might be relevant in coloring your discussions:

Forecasters Increase Odds Of Recession Over Next Year (free WSJ)

Oil Rises to Record $80.18 on Larger-Than-Expected Supply Drop (Bloomberg) 

What say ye?


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please steer clear of politics and ad hominem attacks . . . PLAY NICE

Wednesday, September 12, 2007 | 07:30 PM | Permalink | Comments (71)
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Comments

Barry,

In my opinion, if the Fed cuts its pushing on a string.

The dollar will continue lower and we'll be in a recession by next year.

The stock market will end 2008 lower. And investors will be surprised that the S&P 500 will close down this year too.

Half the 12,000+ hedge funds will go out of business, because the vast majority of them are not adding any vale.

Posted by: Christopher Laudani | Sep 12, 2007 7:43:49 PM

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