Dollar Slumps Broadly, More Losses Seen

[UpInArms]

http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20041022&ID=4047609

NEW YORK (Reuters) - The dollar stumbled on Friday as persistent concerns over the U.S. economy and comments throughout the week from European Central Bank and Federal Reserve officials allowed the currency no respite.

Late in the session, traders took advantage of thin market conditions and sent the dollar to fresh eight-month lows against the euro, an 8-year low versus the Swiss franc and a 12-year trough against the Canadian dollar.

Traders cited the confluence of mixed U.S. economic data, a record trade deficit and waning capital inflows as reasons to sell the currency into next week.

The euro's sudden rise this week against the dollar led some analysts to suspect the U.S. currency could rebound a bit. But market participants still see the dollar under pressure next week, awaiting the initial reading of third-quarter gross domestic product.

<snip>

Analysts anticipate some short-covering next week, as dealers temporarily buy back dollars to cover their bets the U.S. currency will weaken even further, particularly with the U.S. presidential election and the October employment report about two weeks away.

...more...

[NMDemDist2]

1. we are down against the Canadian dollar?

that has never happened in my lifetime I don't think

[DBoon]

2. Down and out

Quote:
"Late in the session, traders took advantage of thin market conditions and sent the dollar to fresh eight-month lows against the euro, an 8-year low versus the Swiss franc and a 12-year trough against the Canadian dollar"

[camero]

6. Last time the looney was this high against the dollar was...

when, you guessed it, Poppy was in office. When Clinton was president, the asshats were complaining about the strong dollar and low oil prices. Those were the days.

The asshats never learn.

[Zorra]

3. Wow. The economy is really tanking hard. I'm more worried about the

economy right now than any other time in my life.

Dow sinking (waiting for Bu$h sugar daddies), oil at a record high, millions of jobs lost in last 4 years, record budget deficit, Iraq is costing a billion dollars a day, personal bankruptcies are at a record high, and now the dollar is experiencing a 12 yr. low against the Canadian dollar.

This is really pretty scary stuff.

[NMDemDist2]

4. yes it is, so many of us are underemployed we couldn't afford

to buy any imports even if we did have decent jobs

good grief

[Gin]

8. Heard this on NPR Money Matters on the way home....Some CEO's

(off the record) say business is "fantastic". It is just not politically correct to say that on the record during this political season. I wonder if they are involved with outsourcing.

[durablend]

5. "We've turned the corner..."

Right into the bad neighborhood. :puke:

[UpInArms]

10. we are also operating on the skirt of legality

in that we are exceeding the allowable debt limit (imposed by Congress) - all the while our debt increases at the rate of $1.7B per day.

Bills are being paid from the trust funds of the retirement accounts of the governmental employees at this moment.

There is no money and no extended credit at this time.

The republican congress did not want to address this situation prior to the election as they did not want to draw attention to the dire straits that this country is financially embroiled in.

Here is the latest debt number:



The estimated population of the United States is 294,601,020
so each citizen's share of this debt is $25,262.21.

The National Debt has continued to increase an average of
$1.70 billion per day since September 30, 2003

for more info also see:

http://www.newsday.com/business/ny-bzdebt1015,0,2999454.story?coll=ny-business-headlines

Treasury skirts $7.4 trillion debt limit

October 15, 2004

WASHINGTON -- Awash in red ink, the federal government has torn up its credit card to keep the national debt under the legal $7.384 trillion ceiling.

Treasury Secretary John Snow made the announcement in a letter to Congressional leaders, warning that he had stopped borrowing funds and would run out of time and gimmicks by mid-November. At that point, he wrote, "all of our previously used prudent and legal actions to avoid breaching the statutory debt limit will be exhausted."

Snow also asked Congress to raise the raise the debt limit.

At the moment, there is no threat to government operations. "The Treasury has more than enough funds," said Lou Crandall, chief economist for Wrightson ICAP, bond research firm based in Jersey City, N.J.. Nor do investors face any risk as long as Congress does indeed raise the debt limit next month.

It would be the third hike in four years as the federal debt has risen by $1.8 trillion since 2000. In that time, federal finances have also swung from a $127 billion budget surplus to the $413 billion deficit for the 2004 fiscal year, which Snow also announced Thursday.

...more...

[flaminbats]

17. Are businesses really concerned about the private sector?

If every multimillionaire and billionaire in America voluntarily donated at least $25,262.21 every year, used solely for debt forgiveness, how many years would it take to pay down the national debt?

If not for the Federal government, America would not have the environment necessary for such individuals to make millions in the free market. At least the wealthy should help make the same opportunities available for future generations which were provided to them!

[sandnsea]

16. 80's redux

I can understand those who are too young to remember, but I sure can't understand those who are voting for this crap who do remember. And we ended up with a stock market crash in 1987, with 10% unemployment in 1992. Total insanity. I am terrified to see what will happen when the interest rates start rising. :scared:

[nadinbrzezinski]

7. And we may be seeing the slow crash of the Dow Jones

folks... I hate to say it, but this may be the begining of a 1929 like event

After all the policies of fearless leader are very similar to those of Hoover.

[Gin]

9. aren't there safeguards put in place to stop trading at a certain number?

g

[camero]

11. not anymore

The only thing left thanks to Bush scalping the social programs is Greenspan lowering interest rates. That's not gonna do it.

[phantom power]

12. they can stop a "fast" crash, but not a prolonged one

The safeguards are against panic, not a prolonged devaluation.

[nadinbrzezinski]

13. Correct, I expect to see this slow progress downwards,

if we indeed are finally there, take anywhere from a week to ten days.

By day three people will realize something is really going on

[wishlist]

14. Bush will blame it all on Clinton, Kerry , Edwards and the trial lawyers

The Dow is now around 10% lower than when Bush took office. So not only is he the only President since Hoover to lose jobs, but the only one to have such a dismal stock market performance too along with the highest oil and gas prices in history.

[Demeter]

15. SURPRISE! October!

Thinking of buying Loonies, since I'm close enough to Canada to do some currency speculation.

[DeepModem Mom]

18. kick