European Tribune - Comments - Not liquidity. Solvency.

Not liquidity. Solvency. | 83 comments (83 topical, 0 editorial, 0 hidden)

Anyone notice the dollar has been rising against the euro for the past several days? .67 to .695. Are non Americans starting to swoop in to buy cheap U.S. assets?

Hey, Grandma Moses started late!

by LEP (rafifoon@yahoo.com) on Mon Dec 17th, 2007 at 08:17:53 AM EST

Re: Watch the dollar. (none / 1)

... or is it a deal between the Federal Reserve and the ECB / EU National Banks. I read on the FT this weekend that the first month's 40B-50B injection scheme involved selling 20B-25B worth of US securities to Europeans!

by vladimir on Mon Dec 17th, 2007 at 08:23:46 AM EST
[ Parent ]

Re: Watch the dollar. (none / 1)

I don't know much about this stuff but I'm guessing that $25B on the world currency markets is not enough to move anything. Since My income is in dollars but my expenses in euros, maybe it's the man (woman?) upstairs toying with me before he kicks me in the balls again.

Hey, Grandma Moses started late!

by LEP (rafifoon@yahoo.com) on Mon Dec 17th, 2007 at 08:42:33 AM EST
[ Parent ]

Re: Watch the dollar. (4.00 / 2)

Here's the link. http://www.ft.com/cms/s/0/d9e03c62-a8bb-11dc-ad9e-0000779fd2ac.html 25B covers 40% of the US current account deficit for 1 month. That's good enough to keep things rolling for now - we'll deal with next month when it comes.

by vladimir on Mon Dec 17th, 2007 at 08:48:02 AM EST
[ Parent ]

Re: Watch the dollar. (4.00 / 3)

Minor, short term, fluctuations are always occurring in currency markets. They come from the high and hyper-leverage by the various players. Even a minor purchase of $100 billion (US), at the right (wrong) time, can move the market 1 to 2 percentage points.

(I can't believe I just wrote "a minor purchase of $100 billion dollars.")

by ATinNM on Mon Dec 17th, 2007 at 11:58:00 AM EST
[ Parent ]

Re: Watch the dollar. (none / 1)

But this has been a trend for the past week now.

by vladimir on Mon Dec 17th, 2007 at 12:21:24 PM EST
[ Parent ]

Re: Watch the dollar. (none / 1)

My "short term" means "an eternity" to a Day Trader. :0

I view anything under 3 months as "short term."

by ATinNM on Tue Dec 18th, 2007 at 10:15:54 PM EST
[ Parent ]

Not liquidity. Solvency. | 83 comments (83 topical, 0 editorial, 0 hidden)

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