The USD

This is my last Gloria Gaddis image. I hope that you've enjoyed them.

On RM, a fellow blogger pointed out an article that I wanted to share with you. The article is from the Financial Post--not a publication that I've used as a resource. The article quotes Marc Chandler, a noted currency specialist and contributer to Real Money. Here's the lead. Please click on the title to see the full story.
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"Greenback is nearing bottom, currency experts
say Jacqueline Thorpe, Financial Post
Published: Tuesday, January 29, 2008

The U.S. Dollar is reaching a bottom, as interest rate cuts
get priced in, foreign investment starts to pour into the
United States and foreign markets start to look less
attractive, strategists at Brown Brothers Harriman in

New York said on Tuesday. "
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I've written in this space previously about the investment story behind the weakness in the USD. Specifically, I wondered whether or not the cacophony of media voices touting "multi-nationals" and foreign investments would back pedal in the event that the USD value against other currencies would begin to reverse.

On Toshi-Tim's blog (Slope of Hope), I posited that our banking system may be perceived as being stronger than European/Asian banks. Given that so much of our market turmoil--not just here but abroad--is due to lack of confidence in the financial system, one could surmise that our US markets, not just our bonds, would be the beneficiary of a flight to quality. In addition to the qualitative (safety) aspect, the forces of buying more for less (value) potentially would lift our markets. But...there will be pressure on earnings from multinationals.

My thinking might be flawed on this, but I wanted to put that out there.