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