I don’t see how you can predict what currencies are going to do. The dollar could go either way, or even stay where it is. The recession has a global dimension so everyone suffers, and it stands to reason the more you are tied into it, the more you will possibly suffer. Chile seems to be the only country [that says] it can ride this one out.
The only businesses which seem to be profiting are bailiffs. Having said that, stories in the foreign press refer to an erosion in confidence in the US’s ability to keep its own house on order. Can’t for the life of me think why? I doubt that lack of confidence would manifest itself into anything tangible, especially in these turbulent times, but it may further down the road. Defiance seems to have already entered into the ring, with Lloyds TSB –a highly respected UK bank– which was deliberately concealing the origin of funds transfers (to the US) from countries blacklisted by the US.
Wall Street has blotted its copy-book. For a lot of people, doing everything just to protect what assets are still in tact is probably the most sensible strategy. I don’t know if a little prayer will help. Perhaps we should ask Bush that one.
