As of this post, the US Dollar is now at parity with the Swiss Franc (CHF) and can buy up to 99 Japanese Yen. On another note the Canadian dollar is once again more valuable than the US dollar, while it will cost $2.02 to buy a British Pound Sterling. Also, the Euro is now equal to $1.56 US dollars.
The Benjamins have gone from heroes to zeros in the 8 years Bush has been in power. This is what happens when you go into a fruitless war in Iraq…
The 500 Euro is what’s happening right now…If it’s good enough for Jay-Z and Giselle Bundchen, then it’s going to be great for the rest of us
People need to understand that the rest of the world is not having stronger economic growth but rather it is the United States ongoing economic decline against the rest of the world that is leading to these exchange rates. At the rate things are going the Chinese Yuan or renminbi is going to be less than 7.00 Yuan to the Dollar by the mid-summer if the Federal Reserve keeps cutting interest rates as I think.
The currency of the 21st century…Will it be all about the Chairman?
Well it is clear that Bernanke may cut interest rates next week anyway regardless of the recent problems. Bear Stearns is just the beginning of many problems for the investment banks and it will only get worse due to the current links between traditional retail and investment banks. I actually thought at one point that Glass-Steagall was a sensible law which kept commercial and investment banks as separate entities, created the FDIC, and other provisions which were designed to curb dangerous speculation. Unfortunately, the provisions which prevented banks from offering financial services was repealed in 1999 when Clinton signed the Gramm-Leach-Bliley Act.
The Glass-Steagall wall was devised to prevent a repeat of the 1920s’ scams, in which banks made speculative investments, turned the debts into securities, and sold them off to unsuspecting investors with the blessing of the bank. With Glass-Steagall, commercial banks were tightly supervised and given access to federal deposit insurance, to keep savings secure and prevent runs on banks. Investment banks, meanwhile, were not government-guaranteed and were free to do more speculative transactions for consenting adult customers. But Roosevelt’s newly created SEC subjected securities markets to much tighter structures against self-dealing and insider conflicts of interest.
If you fast forward to 2000, much of this protective apparatus has been repealed. Regulators who didn’t believe in regulation and a compliant Congress have allowed financial engineers to evade what remains. In the 1980s, regulators began allowing exceptions to Glass-Steagall. In 1999, Congress finally repealed it outright, permitting financial supermarkets like Citigroup to operate any kind of financial business they desired, and profit from multiple conflicts of interest. The scandals that pumped up the dot-com bubble of the late 1990s, as well as the most flagrant cases like Enron, and the crash that followed, were the result of the SEC and the bank regulators ceasing to police conflicts of interest. In the scandals of the 1990s, corporate CEOs, their accountants, and stock analysts working for their bankers, all conspired to puff up corporate balance sheets and pump up stock prices on which executive bonuses depended. This is a little harder today, thanks to the honest accounting requirements of the 2002 Sarbanes-Oxley Act (which the Bush administration hopes to water down). But the same kinds of conflicts and potentials for abuse exist when a mega-bank underwrites a leveraged buyout by an affiliated hedge fund, and then hypes the sale of securities when the fund is ready to sell the company back to the public.
It’s time America learned from Japan to deal with their version of the bubble economy and the credit and real estate meltdowns…According to reliable sources America is going to be fucked in in FY2008 for Q1, Q2, Q3, with a slim chance of recovery in Q4 (assuming America is not officially in a recession).