The Latest Tell....
Remember when the U.S. dollar represented a safe haven during spikes in geopolitical tension? Before the past few years, events like the Bhutto assassination almost always caused at least a temporary surge in the dollar.
Here's how the dollar performed last Thursday and Friday. Note what happened on the morning of the 27th, when the terrible news first broke (yes, along with some soft economic data). If you know someone still in denial about this administration's lasting economic legacy, print out that chart, circle Thursday in red ink, and put it in the mail.
Here's how the dollar performed last Thursday and Friday. Note what happened on the morning of the 27th, when the terrible news first broke (yes, along with some soft economic data). If you know someone still in denial about this administration's lasting economic legacy, print out that chart, circle Thursday in red ink, and put it in the mail.
posted by The Cunning Realist at Monday, December 31, 2007
2 Comments:
I live in a third world country and spoke to a retail banker in Citigroup a couple of years ago.
She told me that her clients were stunned that the dollar was declining against the local currency. For many of them the reverse had been true for virtually their entire lives. Some even expected Citibank to make up their losses.
Once you lose safe-haven status it is gone for a generation
Excellent catch CR - I was surprised to see the newswires commenting on the dollar's fall on Thursday as part of a "flight to quality" in the wake of Bhutto's assassination, and wondered that they could print such an "explanation" without commenting on the incredible reversal of trading precedent.
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