Home › Forums › Financial Markets/Economics › Day of reckoning looms for the U.S. dollar
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May 27, 2009 at 11:51 PM #407216May 28, 2009 at 12:00 PM #406695
CoronitaParticipant…then again, maybe not a day of reckoning (yet, at least)….
NEW YORK (AP) — The stock market is again taking its cues from the bond market.
Stocks turned higher Thursday after solid demand at a Treasury auction eased fears that the appetite for U.S. debt would dry up and force the government to pay higher interest rates to entice buyers. That in turn could endanger an economic recovery by driving borrowing rates higher for loans on homes, cars and other major purchases.
Interest rate movements were tugging at the stock market for a second straight day. Investors were relieved that a $26 billion auction of 7-year notes went well Thursday, a day after sending long-term Treasurys plunging on fears that the government could eventually exhaust buyers’ appetite for debt with an unprecedented level of bond sales.
The yield on the 10-year note, a key benchmark for home mortgages and other loans, edged down to 3.73 percent from 3.75 percent the day before. The yield, which moves in the opposite direction from the price of the note, reached its highest level since November on Wednesday.
May 28, 2009 at 12:00 PM #406938CoronitaParticipant…then again, maybe not a day of reckoning (yet, at least)….
NEW YORK (AP) — The stock market is again taking its cues from the bond market.
Stocks turned higher Thursday after solid demand at a Treasury auction eased fears that the appetite for U.S. debt would dry up and force the government to pay higher interest rates to entice buyers. That in turn could endanger an economic recovery by driving borrowing rates higher for loans on homes, cars and other major purchases.
Interest rate movements were tugging at the stock market for a second straight day. Investors were relieved that a $26 billion auction of 7-year notes went well Thursday, a day after sending long-term Treasurys plunging on fears that the government could eventually exhaust buyers’ appetite for debt with an unprecedented level of bond sales.
The yield on the 10-year note, a key benchmark for home mortgages and other loans, edged down to 3.73 percent from 3.75 percent the day before. The yield, which moves in the opposite direction from the price of the note, reached its highest level since November on Wednesday.
May 28, 2009 at 12:00 PM #407182CoronitaParticipant…then again, maybe not a day of reckoning (yet, at least)….
NEW YORK (AP) — The stock market is again taking its cues from the bond market.
Stocks turned higher Thursday after solid demand at a Treasury auction eased fears that the appetite for U.S. debt would dry up and force the government to pay higher interest rates to entice buyers. That in turn could endanger an economic recovery by driving borrowing rates higher for loans on homes, cars and other major purchases.
Interest rate movements were tugging at the stock market for a second straight day. Investors were relieved that a $26 billion auction of 7-year notes went well Thursday, a day after sending long-term Treasurys plunging on fears that the government could eventually exhaust buyers’ appetite for debt with an unprecedented level of bond sales.
The yield on the 10-year note, a key benchmark for home mortgages and other loans, edged down to 3.73 percent from 3.75 percent the day before. The yield, which moves in the opposite direction from the price of the note, reached its highest level since November on Wednesday.
May 28, 2009 at 12:00 PM #407244CoronitaParticipant…then again, maybe not a day of reckoning (yet, at least)….
NEW YORK (AP) — The stock market is again taking its cues from the bond market.
Stocks turned higher Thursday after solid demand at a Treasury auction eased fears that the appetite for U.S. debt would dry up and force the government to pay higher interest rates to entice buyers. That in turn could endanger an economic recovery by driving borrowing rates higher for loans on homes, cars and other major purchases.
Interest rate movements were tugging at the stock market for a second straight day. Investors were relieved that a $26 billion auction of 7-year notes went well Thursday, a day after sending long-term Treasurys plunging on fears that the government could eventually exhaust buyers’ appetite for debt with an unprecedented level of bond sales.
The yield on the 10-year note, a key benchmark for home mortgages and other loans, edged down to 3.73 percent from 3.75 percent the day before. The yield, which moves in the opposite direction from the price of the note, reached its highest level since November on Wednesday.
May 28, 2009 at 12:00 PM #407392CoronitaParticipant…then again, maybe not a day of reckoning (yet, at least)….
NEW YORK (AP) — The stock market is again taking its cues from the bond market.
Stocks turned higher Thursday after solid demand at a Treasury auction eased fears that the appetite for U.S. debt would dry up and force the government to pay higher interest rates to entice buyers. That in turn could endanger an economic recovery by driving borrowing rates higher for loans on homes, cars and other major purchases.
Interest rate movements were tugging at the stock market for a second straight day. Investors were relieved that a $26 billion auction of 7-year notes went well Thursday, a day after sending long-term Treasurys plunging on fears that the government could eventually exhaust buyers’ appetite for debt with an unprecedented level of bond sales.
The yield on the 10-year note, a key benchmark for home mortgages and other loans, edged down to 3.73 percent from 3.75 percent the day before. The yield, which moves in the opposite direction from the price of the note, reached its highest level since November on Wednesday.
May 28, 2009 at 5:41 PM #406870patientrenter
ParticipantI don’t know if you’ve followed my occasional posts over the last 2 years, partypup, but I have long advised readers to prepare for appreciation of the yen versus the dollar. I’ve made a good amount of money on that bet.
That won’t prevent the Federal Reserve from buying Treasuries. In fact, it will encourage the Fed to buy more, since the demand for Treasuries coming from foreign CBs is declining, while the US govt deficit is high and increasing.
Pressures are pushing domestic interest rates up, and the value of the dollar against foreign currencies down. Our government can influence how much of each occurs. It is clear that our government is committed to cheap money, so they will keep interest rates low by having the Fed buy lots of Treasuries and other assets, if necessary. That will leave the dollar open to depreciation against other currencies.
Will the dollar “collapse” and become “worthless”? Of course not. It may lose 10% of its value, or 20%, or 30%, or even 40%, over time. But it won’t become worthless, and it won’t lose enormous amounts of value overnight. And a reserve currency is not unique. It is only natural that other currencies will be used more than they are now as a reserve of value. Already the euro, and even the GBP, are reserve currencies. As the world becomes more diversified and dispersed and complex, we should expect that more and more currencies will be used as a store of value. But we’re not all going to wake up in 12 months and find everyone refuses to accept any dollars as payment for anything. That’s just exaggeration.
May 28, 2009 at 5:41 PM #407113ParticipantI don’t know if you’ve followed my occasional posts over the last 2 years, partypup, but I have long advised readers to prepare for appreciation of the yen versus the dollar. I’ve made a good amount of money on that bet.
That won’t prevent the Federal Reserve from buying Treasuries. In fact, it will encourage the Fed to buy more, since the demand for Treasuries coming from foreign CBs is declining, while the US govt deficit is high and increasing.
Pressures are pushing domestic interest rates up, and the value of the dollar against foreign currencies down. Our government can influence how much of each occurs. It is clear that our government is committed to cheap money, so they will keep interest rates low by having the Fed buy lots of Treasuries and other assets, if necessary. That will leave the dollar open to depreciation against other currencies.
Will the dollar “collapse” and become “worthless”? Of course not. It may lose 10% of its value, or 20%, or 30%, or even 40%, over time. But it won’t become worthless, and it won’t lose enormous amounts of value overnight. And a reserve currency is not unique. It is only natural that other currencies will be used more than they are now as a reserve of value. Already the euro, and even the GBP, are reserve currencies. As the world becomes more diversified and dispersed and complex, we should expect that more and more currencies will be used as a store of value. But we’re not all going to wake up in 12 months and find everyone refuses to accept any dollars as payment for anything. That’s just exaggeration.
May 28, 2009 at 5:41 PM #407357ParticipantI don’t know if you’ve followed my occasional posts over the last 2 years, partypup, but I have long advised readers to prepare for appreciation of the yen versus the dollar. I’ve made a good amount of money on that bet.
That won’t prevent the Federal Reserve from buying Treasuries. In fact, it will encourage the Fed to buy more, since the demand for Treasuries coming from foreign CBs is declining, while the US govt deficit is high and increasing.
Pressures are pushing domestic interest rates up, and the value of the dollar against foreign currencies down. Our government can influence how much of each occurs. It is clear that our government is committed to cheap money, so they will keep interest rates low by having the Fed buy lots of Treasuries and other assets, if necessary. That will leave the dollar open to depreciation against other currencies.
Will the dollar “collapse” and become “worthless”? Of course not. It may lose 10% of its value, or 20%, or 30%, or even 40%, over time. But it won’t become worthless, and it won’t lose enormous amounts of value overnight. And a reserve currency is not unique. It is only natural that other currencies will be used more than they are now as a reserve of value. Already the euro, and even the GBP, are reserve currencies. As the world becomes more diversified and dispersed and complex, we should expect that more and more currencies will be used as a store of value. But we’re not all going to wake up in 12 months and find everyone refuses to accept any dollars as payment for anything. That’s just exaggeration.
May 28, 2009 at 5:41 PM #407419ParticipantI don’t know if you’ve followed my occasional posts over the last 2 years, partypup, but I have long advised readers to prepare for appreciation of the yen versus the dollar. I’ve made a good amount of money on that bet.
That won’t prevent the Federal Reserve from buying Treasuries. In fact, it will encourage the Fed to buy more, since the demand for Treasuries coming from foreign CBs is declining, while the US govt deficit is high and increasing.
Pressures are pushing domestic interest rates up, and the value of the dollar against foreign currencies down. Our government can influence how much of each occurs. It is clear that our government is committed to cheap money, so they will keep interest rates low by having the Fed buy lots of Treasuries and other assets, if necessary. That will leave the dollar open to depreciation against other currencies.
Will the dollar “collapse” and become “worthless”? Of course not. It may lose 10% of its value, or 20%, or 30%, or even 40%, over time. But it won’t become worthless, and it won’t lose enormous amounts of value overnight. And a reserve currency is not unique. It is only natural that other currencies will be used more than they are now as a reserve of value. Already the euro, and even the GBP, are reserve currencies. As the world becomes more diversified and dispersed and complex, we should expect that more and more currencies will be used as a store of value. But we’re not all going to wake up in 12 months and find everyone refuses to accept any dollars as payment for anything. That’s just exaggeration.
May 28, 2009 at 5:41 PM #407567ParticipantI don’t know if you’ve followed my occasional posts over the last 2 years, partypup, but I have long advised readers to prepare for appreciation of the yen versus the dollar. I’ve made a good amount of money on that bet.
That won’t prevent the Federal Reserve from buying Treasuries. In fact, it will encourage the Fed to buy more, since the demand for Treasuries coming from foreign CBs is declining, while the US govt deficit is high and increasing.
Pressures are pushing domestic interest rates up, and the value of the dollar against foreign currencies down. Our government can influence how much of each occurs. It is clear that our government is committed to cheap money, so they will keep interest rates low by having the Fed buy lots of Treasuries and other assets, if necessary. That will leave the dollar open to depreciation against other currencies.
Will the dollar “collapse” and become “worthless”? Of course not. It may lose 10% of its value, or 20%, or 30%, or even 40%, over time. But it won’t become worthless, and it won’t lose enormous amounts of value overnight. And a reserve currency is not unique. It is only natural that other currencies will be used more than they are now as a reserve of value. Already the euro, and even the GBP, are reserve currencies. As the world becomes more diversified and dispersed and complex, we should expect that more and more currencies will be used as a store of value. But we’re not all going to wake up in 12 months and find everyone refuses to accept any dollars as payment for anything. That’s just exaggeration.
May 28, 2009 at 5:46 PM #406774Arraya
Participant[img_assist|nid=11171|title=Pelosi… Asking where she can exchange Dollars for Yuan|desc=|link=node|align=left|width=836|height=600]
http://news.xinhuanet.com/english/2009-05/27/content_11446020.htm
Chinese President Hu Jintao on Wednesday met with visiting U.S. House Speaker Nancy Pelosi.Hu highlighted the remarkable progress in bilateral ties since the two nations forged diplomatic relations 30 years ago, saying the two had “worked closer” on many fields in the new century.
He recalled his meeting with U.S. President Barack Obama in London last month, saying the two had agreed to promote a “positive,” “cooperative” and “comprehensive” relationship to set the tone for development of bilateral ties.
China was willing, along with the United States, to make unremitting efforts to forge a positive, cooperative and comprehensive bilateral relationship in the 21st century, Hu said, stressing that mutual effort should be made based on equality and mutual respect.
He said differences could be handled through dialogue and consultation.
May 28, 2009 at 5:46 PM #407018Participant[img_assist|nid=11171|title=Pelosi… Asking where she can exchange Dollars for Yuan|desc=|link=node|align=left|width=836|height=600]
http://news.xinhuanet.com/english/2009-05/27/content_11446020.htm
Chinese President Hu Jintao on Wednesday met with visiting U.S. House Speaker Nancy Pelosi.Hu highlighted the remarkable progress in bilateral ties since the two nations forged diplomatic relations 30 years ago, saying the two had “worked closer” on many fields in the new century.
He recalled his meeting with U.S. President Barack Obama in London last month, saying the two had agreed to promote a “positive,” “cooperative” and “comprehensive” relationship to set the tone for development of bilateral ties.
China was willing, along with the United States, to make unremitting efforts to forge a positive, cooperative and comprehensive bilateral relationship in the 21st century, Hu said, stressing that mutual effort should be made based on equality and mutual respect.
He said differences could be handled through dialogue and consultation.
May 28, 2009 at 5:46 PM #407262Participant[img_assist|nid=11171|title=Pelosi… Asking where she can exchange Dollars for Yuan|desc=|link=node|align=left|width=836|height=600]
http://news.xinhuanet.com/english/2009-05/27/content_11446020.htm
Chinese President Hu Jintao on Wednesday met with visiting U.S. House Speaker Nancy Pelosi.Hu highlighted the remarkable progress in bilateral ties since the two nations forged diplomatic relations 30 years ago, saying the two had “worked closer” on many fields in the new century.
He recalled his meeting with U.S. President Barack Obama in London last month, saying the two had agreed to promote a “positive,” “cooperative” and “comprehensive” relationship to set the tone for development of bilateral ties.
China was willing, along with the United States, to make unremitting efforts to forge a positive, cooperative and comprehensive bilateral relationship in the 21st century, Hu said, stressing that mutual effort should be made based on equality and mutual respect.
He said differences could be handled through dialogue and consultation.
May 28, 2009 at 5:46 PM #407324Participant[img_assist|nid=11171|title=Pelosi… Asking where she can exchange Dollars for Yuan|desc=|link=node|align=left|width=836|height=600]
http://news.xinhuanet.com/english/2009-05/27/content_11446020.htm
Chinese President Hu Jintao on Wednesday met with visiting U.S. House Speaker Nancy Pelosi.Hu highlighted the remarkable progress in bilateral ties since the two nations forged diplomatic relations 30 years ago, saying the two had “worked closer” on many fields in the new century.
He recalled his meeting with U.S. President Barack Obama in London last month, saying the two had agreed to promote a “positive,” “cooperative” and “comprehensive” relationship to set the tone for development of bilateral ties.
China was willing, along with the United States, to make unremitting efforts to forge a positive, cooperative and comprehensive bilateral relationship in the 21st century, Hu said, stressing that mutual effort should be made based on equality and mutual respect.
He said differences could be handled through dialogue and consultation.
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