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Post by Ken on Sept 20, 2007 5:45:04 GMT -6
The saudi-riyal peg is done? anyone catch any news on this. I see the weakness in the dollar this morning as it cracked 1.40 /euro
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Post by Ken on Sept 20, 2007 7:26:20 GMT -6
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Post by unlawflcombatnt on Sept 20, 2007 15:09:29 GMT -6
The saudi-riyal peg is done? anyone catch any news on this. I see the weakness in the dollar this morning as it cracked 1.40 /euro I read the same article last night. It was referenced at 2 sites that I frequent. According to the article, the Saudis don't want to "import inflation." Bernanke's target rate cut looks like it's back-firing already. 10-year Treasury rates are climbing, not falling. Since mortgage rates are tied to 10-year rates, it's going to hurt housing-- decreasing home sales, housing demand, and home prices. Declining home prices decreases the value of the asset that backs Mortgage Backed Securities, decreasing MBS value still further-- making them even less "liquid."
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Post by Ken on Sept 20, 2007 17:34:57 GMT -6
we'll see if we get any capitulation from the stock market but i have a feeling that the weakness and the rise in the yield due to this weakness will pull the steam out of the rally.
That .5% was too much. Unless they are seeing something we are not. cut .25% take a look to guage the reaction, if there is a need for s second cut do it at the next meeting if necessary. That "shocked" the market. On a good note Oracle beat expectations. sure wish I owned more gold.
I do not remember a time when the dollar reacted so quickly to a rate cut. So the cut alone was not the problem. That move had to spook te chinese a bit too.
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