Canadian and US Dollars Trade at Parity, Not Good
The Fed goosed up the equity market yesterday by lowering the Fed Funds rate. But that move also drove the dollar down sharply lower.
If you want to have the economy that the US did in the 70s then you will applaud the Feds's action. Not since 1976 did the Greenback equal one Canadian dollar.
The Greenback also took a hit against the Euro, trading at about one dollar to $1.40 Euros.
Countries such as Saudi Arabia, who tie their currency to the dollar, are reconsidering.
The mission of the Fed is to stabilize the dollar. Bernanke has gone way beyond that mission by trying to manage the equity markets and the economy. Can we get Volcker back again?
If you want to have the economy that the US did in the 70s then you will applaud the Feds's action. Not since 1976 did the Greenback equal one Canadian dollar.
The Greenback also took a hit against the Euro, trading at about one dollar to $1.40 Euros.
Countries such as Saudi Arabia, who tie their currency to the dollar, are reconsidering.
The mission of the Fed is to stabilize the dollar. Bernanke has gone way beyond that mission by trying to manage the equity markets and the economy. Can we get Volcker back again?
posted by Leonardo @ 9/20/2007
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