NCclimber 0 #26 October 4, 2007 Quote It's doing greathttp://www.iht.com/bin/print.php?id=7720834 Seems like all these foreign investors view the weakness in the dollar as a temporary situation, not part of a continuing trend. Quote Share this post Link to post Share on other sites
martin-o 0 #27 October 4, 2007 how so? /Martin Quote Share this post Link to post Share on other sites
crwtom 0 #28 October 4, 2007 Quote I don't understand how you can devalue the dollar. Care to explain a little more. Print a lot of dead presidents. Cheers, T ******************************************************************* Fear causes hesitation, and hesitation will cause your worst fears to come true Quote Share this post Link to post Share on other sites
NCclimber 0 #29 October 5, 2007 Quotehow so? /Martin What is it you don't understand? Quote Share this post Link to post Share on other sites
philh 0 #30 October 5, 2007 I think its you that doesnt understand. yes there are foreign companies buying US compnaies in the states. But thats just part of the overall asset picture . The net picture is simply the value of the Us dollar as described in the spot foriegn exchange markets and there no question the value fo the Us dollar has been going down and down and down. Whether it will continue to do so is anyones guess. Quote Share this post Link to post Share on other sites
philh 0 #31 October 5, 2007 The value of theUS dollar is like any other asset. Of ocurse its ddetermined by an interaction of supplyand demand but what influences that process is very complex. Sometimes if Fed raises interest rates more than expected thhe USdollar will rise in value , but if people as a result of the hike sell bonds and stocks and repatriate them into other currnecies it can go down. Most asset prices follow whats called a Markov process ie they are unpredicatble . if you want read more about this I recomend "A Random Walk Down Wall Street" by Burton Malkiel. Quote Share this post Link to post Share on other sites
Amazon 7 #32 October 5, 2007 Quote The value of theUS dollar is like any other asset. Of ocurse its ddetermined by an interaction of supplyand demand but what influences that process is very complex. Sometimes if Fed raises interest rates more than expected thhe USdollar will rise in value , but if people as a result of the hike sell bonds and stocks and repatriate them into other currnecies it can go down. Most asset prices follow whats called a Markov process ie they are unpredicatble . All I have to do is look at this and know that the last 6 years have been the worst support for the US Dollar in my lifetime. http://www.xe.com/ When the Canadian dollar ( 0.98130) is within 2 cents of PAR with the US Dollar.... Even the Australian Dollar ( 1.11254) is worth more than a dollar.. What the hell are the fucktards in Washington thinking. Quote Share this post Link to post Share on other sites
SkyDekker 1,155 #33 October 5, 2007 Actually the Canadian Dollar is now worth slightly more than the US dollar.....loving it. CADUSD=X 1 Oct 5 1.0186 1.0186 1.0186 1.0190 Quote Share this post Link to post Share on other sites
NCclimber 0 #34 October 5, 2007 QuoteI think its you that doesnt understand.What is it that I don't understand? Quoteyes there are foreign companies buying US compnaies in the states. But thats just part of the overall asset picture . But why European, Asian and Canadian companies buying US stock at a record pace? QuoteWhether it will continue to do so is anyones guess. True. But the fact that foreign companies are loading up at a record pace is indicative of their sentiment, don't you think? Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #35 October 5, 2007 You are reading the chart backwards Amazon. Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #36 October 5, 2007 QuoteQuoteI think its you that doesnt understand.What is it that I don't understand? Quoteyes there are foreign companies buying US compnaies in the states. But thats just part of the overall asset picture . But why European, Asian and Canadian companies buying US stock at a record pace? QuoteWhether it will continue to do so is anyones guess. True. But the fact that foreign companies are loading up at a record pace is indicative of their sentiment, don't you think? This is a one way stat. The story talks about the Canadian Bank of Commerce buying a US bank; The Canadian press just talks about Alcoa buying Alcan, which is a much larger transaction the other way. If net movements were to the selling of US capital assets then the net movement on the currency would be positive; foreigners need to purchase US currency in order to complete thes large transactions. Quote Share this post Link to post Share on other sites
Remster 26 #37 October 5, 2007 QuoteCanadian press just talks about Alcoa buying Alcan Andrew: you need to keep up! Its Rio Tinto who is buying Alcan, not Alcoa.Remster Quote Share this post Link to post Share on other sites
martin-o 0 #38 October 5, 2007 QuoteSeems like all these foreign investors view the weakness in the dollar as a temporary situation, not part of a continuing trend. How do you come to this conclusion? Seems overly simplistic to me. For example, company A might buy company B in another country because of the cheap labor in that country. That doesn't mean that the company A is expecting a rise in the cost for labor in company B... Then again, I wouldn't see foreign investments as something bad either, as it means that capital is pouring into said Country. Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #39 October 5, 2007 Quote Andrew: you need to keep up! Its Rio Tinto who is buying Alcan, not Alcoa. My mistake. Quote Share this post Link to post Share on other sites
NCclimber 0 #40 October 5, 2007 Good points. I was looking at it from a simplistic point of view -investors seeking the highest return for the stock they own. Quote Share this post Link to post Share on other sites
philh 0 #41 October 6, 2007 "But why European, Asian and Canadian companies buying US stock at a record pace? In Reply To Whether it will continue to do so is anyones guess. True. But the fact that foreign companies are loading up at a record pace is indicative of their sentiment, don't you think? " This is what we call cherry picking data. Lets assume that your assuption is correct. Its one of many bits of data. Some people are buying US assets (for exaple the foreign companies you cite loading up at a record pace) but others are selling Us assets. What matters is not whether there are some who are motivated to buy and others to sell, but is the net selling pressure greater than the net buying pressure. If the net selling pressure is greater then the price will go down and that is exactly what it has done. You ability to find some buyers out of a wave of sellers is utterly irrelevant. Quote Share this post Link to post Share on other sites
NCclimber 0 #42 October 8, 2007 Quote"But why European, Asian and Canadian companies buying US stock at a record pace? In Reply To Whether it will continue to do so is anyones guess. True. But the fact that foreign companies are loading up at a record pace is indicative of their sentiment, don't you think? " This is what we call cherry picking data. Lets assume that your assuption is correct. Its one of many bits of data. Some people are buying US assets (for exaple the foreign companies you cite loading up at a record pace) but others are selling Us assets. What matters is not whether there are some who are motivated to buy and others to sell, but is the net selling pressure greater than the net buying pressure. If the net selling pressure is greater then the price will go down and that is exactly what it has done. You ability to find some buyers out of a wave of sellers is utterly irrelevant. Have you been paying attention to the US stock markets, lately? Quote Share this post Link to post Share on other sites
kallend 1,681 #43 November 7, 2007 Another record low for the $US www.usatoday.com/money/markets/2007-11-07-dollar-wed_N.htm Thanks, George.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #44 November 7, 2007 The rest of the world has lost faith in not only the currency, but the economy. A severe recession is likely; a sharp reduction of American material standards is inevitable. The big question is not whether the US economy will crash, but whether the Chinese bubble will also burst. The company with the largest capitalization in the world is PetroChina. Their revenue, however, is not in the top fifty companies in the world. Quote Share this post Link to post Share on other sites
idrankwhat 0 #45 November 7, 2007 Quote Another record low for the $US www.usatoday.com/money/markets/2007-11-07-dollar-wed_N.htm Thanks, George. Always with the negative waves. You need something upbeat like Gold nears record high as oil sets a new one Quote Share this post Link to post Share on other sites
kallend 1,681 #46 November 7, 2007 Quote Quote Another record low for the $US www.usatoday.com/money/markets/2007-11-07-dollar-wed_N.htm Thanks, George. Always with the negative waves. You need something upbeat like Gold nears record high as oil sets a new one the Golden Rule, eh?... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
ypelchat 0 #47 November 8, 2007 Bought a new main canopy, reserve canopy, and a new AAD! And a new Vector 3 will follow. Perfect timing. Like Kallend said.... Thanks George. Yves. Quote Share this post Link to post Share on other sites
Lucky... 0 #48 November 8, 2007 >>>>>>Like Kallend said.... Thanks George. CORRECTION: Thx all those who voted for him in 00, a special thx for all those who voted for him in 04 after he is obviously a trainwreck. Quote Share this post Link to post Share on other sites
Lucky... 0 #49 November 8, 2007 Quote OK, maybe somebody can explain this to me so I can understand it. If the economy is so great, people are spending money. I think they are just using credit cards and owing money. The stock market is up, unemployment steady in the 4% range, interest rates low and a list of other things. Why is the U.S. dollar worth about as much as a popcorn fart these days. It used to be what people looked up to now they see it and wipe there ass with. So please explain without trying to make me feel like a dumb ass or making this a GWB sucks thread why the dollar is so low. Unless you have a strong background in economics I think it's too difficult to fully understand, I know I don't. I do know some basics of teh economy and it's general applications. - If the economy is so great, people are spending money. Job market and the value of the dollar aren't totally connected. Actually, American labor/products become a better bargain when the dollar is dying, so perhaps that explains some of it. - I think they are just using credit cards and owing money. Perhaps, but the job market is currently strong. I think that might have to do with giving employers tax breaks and being able to employ a lot of people. But as we've seen, trickle down works all the time for the rich, sometimes for the poor, and never for the longterm economy. - The stock market is up That means the rich are getting richer. Hell, even during the Carter Admin recession and during the 1990-91 recesion the market increased - not really a good indicator. - unemployment steady in the 4% range W/o checking isn't it 4.5 to 4.7? But not bad at all. - interest rates low Not really a good sign, the Fed Res lowers rates to stimulate the economy, raises to slow it for fears of inflation. For example, during Clintons heyday, late 90's, the basic home loan was 7-7.5ish. Remember houses cost 1/2 of what they now are. - Why is the U.S. dollar worth about as much as a popcorn fart these days. No, popcorn farts cost 2 bucks Many reasons, the war has cost 1/2 trillion. Remember, we've been a debtor nation since 1840 and carried 1T in 1980, now >9T. To think the war accounts for 1/18th of the debt that is 170 years old: WOW. I think the reserve has ordered the mint to run 24/7 pumping out $$, so when there is more, each is worth less. I collect old casino chips, if a chip is known to have 10 survivors, they are worth plenty, but if a box is discovered the value plumets. Understand that the debt is owned by the gov and by the public, about 50/50. China holds >1T of our debt, it is said they are holding it to keep our $$$ falsely inflated so their labor is a better bargain. >>>>>>>>>So please explain without trying to make me feel like a dumb ass or making this a GWB sucks thread why the dollar is so low. BTW, all 3 pieces of garbage are at fault, Bush Sr the least at fault. If not, explain this: http://www.cedarcomm.com/~stevelm1/usdebt.htm Quote Share this post Link to post Share on other sites
Lucky... 0 #50 November 8, 2007 Quote The last time the Canadian dollar was worth more than the US was during the seventies when the US was mired in an expensive war they could not figure out how to pay for or get out of, and the price of oil was very high (sound familiar?). The result of that was a decade of economic malaise and inflation followed by the worst recession since the thirties. Awesome perspective - never linked it even tho I knew it was 1973 when the US barely dipped below the CD. Yea, war is hell alright, hellaciously expensive. Killig innocent people costs more than it used to Quote Share this post Link to post Share on other sites
