Wednesday, March 12, 2008

Wha'd I tell ya?

Wha'd I tell ya yesterday about the Fed's desperate liquidity salvage operation? That promise of a continued dive for the dollar is only good news to exporters from the US, such as CAT.
Didn't I say "just watch"? We didn't have to wait long for this:
U.S. Stock-Index Futures Drop; Humana, UnitedHealth Retreat
By Eric Martin
March 12 (Bloomberg) -- U.S. stock-index futures retreated after Humana Inc. reduced its earnings forecast and concern grew that the Federal Reserve's plan to stem credit losses may not be enough to avert a recession.

...or this...
Dollar Declines on Speculation Fed Rescue Package Won't Succeed

By Gavin Finch
More Photos/Details

March 12 (Bloomberg) -- The dollar fell against the euro and the yen on speculation the Federal Reserve's plan to provide funds to banks won't be enough to break the gridlock in money- market lending and stem credit losses.

``Read the need for such new measures as being a symptom of what ails the world and not a panacea for its problems,'' said David Simmonds, the London-based global head of currency research at Royal Bank of Scotland Plc, the world's fourth-biggest foreign-exchange trader. ``Stay short dollars.''

And as for the DOW? That injection had about a 30 hour shelf life and then it was back to downward trending forced by a financial world that finally sees the emperor has no assets.

True enough that no one-day chart picked from the past proves much of anything about the market or the person basing claims on the chart. But if a dolt like me can describe what will happen on a day in the future with a modest qualitative accuracy, and one predicting the opposite of what the powers that be were seeking...I think the writing is on the wall street, folks.

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