[quote=peterb]The US$ is buying more of almost everything by the day!![/quote]
But what happens when this crisis settles down? (and it will settle down at some point) With the market crashing, you would expect treasuries to be skyrocketing. But they aren’t. Matter of fact, yields on 10yrs have been rising. Might be because people need to liquidate them so they pay their Lehman CDS’s, but might it be that there is an enormous bubble in treasuries right now?
If the people arguing that treasuries are the mother of all bubbles out there are right, what happens when that pops? The obvious answer would be that interest rates go through the roof. And then we get a full blown dollar crisis. This could put a crimp in all the bailout plans.
Of course if you’re buying an american house with american dollars all this might be irrelevant. Then again, it might not. What do I know.
