Dollar falls again, euro zone divided - Page 2 - Mercedes-Benz Forum

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post #11 of 19 (permalink) Old 03-01-2008, 11:53 AM
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Originally Posted by mcbear View Post
If 1% loss on every transEuro transaction doesn't mean anything to you, then no. But to the Trillions of dollars that are moved back and forth every day that little percent starts looking like real money.
We are talking about significantly less than 1% at this point.

Yes, I do realize that with the trillions of dollars of transactions it does add up.

My point was apparently a bit less clear that I thought.

My point is simply that with the dollar so far in the crapper at this point what is a little more. If you are buried under an avalanche does another 10lb rock really make any difference.
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post #12 of 19 (permalink) Old 03-01-2008, 12:00 PM
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More export business please.
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post #13 of 19 (permalink) Old 03-01-2008, 01:12 PM
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GOOD NEWS!

Just think of the additional millions of tourists from abroad who will be visiting and spending their money here. Pretty sly of US, huh?

Don't believe everything you think
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post #14 of 19 (permalink) Old 03-03-2008, 08:47 AM
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Just think of the additional millions of tourists from abroad who will be visiting and spending their money here. Pretty sly of US, huh?
Pull your head out and read instead of spouting nonsense....................

Published 26th of Feb........
Touting U.S. tourism while keeping foreigners out | Chron.com - Houston Chronicle
an excerpt from the article above: According to various estimates, the United States has lost as much as 20 percent of the foreign tourists that were visiting our country each year prior to Sept. 11.

oh and you probably missed this one too..............

Published 28th of Feb. and here is an excerpt......The number of overseas tourists visiting the United States declined last year, serving as yet another indication that the slowing of the world economy, coupled with high oil prices, is also hurting the travel industry. The US Department of Commerce made public key figures earlier today that suggest a noticeable drop in the number of overseas visitors to America. Most conservative estimates indicate that the number of tourists arriving on long-haul flights decreased by about 11 percent last year, when compared with figures from 2000. The Travel Industry Association (TIA) also contends that the number of overseas visitors is likely to continue to decline, at least over the short-term.

Fewer overseas tourists visit US

oh ho here is another just published on the 27th of Feb.......and another excerpt: Tourist numbers to the United States have plummeted and its unfriendly entry processes are being blamed.

In 2007, overseas visitors to the United States numbered 23.2 million, 11% fewer than in 2000. Visits from Britain, Germany, France, the Netherlands and Brazil are all still down.

The US has now been displaced by China as the world's third most-visited country.

These are the latest statistics from the Travel Industry Association (TIA), a Washington-based lobby group which says the government is not doing enough to dispel worldwide perceptions of the United States as unfriendly to international travellers.

As a result, billions of tourist dollars go elsewhere at a time when global travel is booming.


Unfriendly US border control turns tourists off | TRAVEL | NEWS | tvnz.co.nz
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post #15 of 19 (permalink) Old 03-03-2008, 09:14 AM
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Pull your head out and read instead of spouting nonsense....................
..............
JakAss... Pull your head out!

Tourism wins with the dollar down -- or up - MSN Money

Tourism numbers increase despite strong Aussie dollar | The Courier-Mail

Weak US dollar benefits Caribbean - JAMAICAOBSERVER.COM

Don't believe everything you think
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post #16 of 19 (permalink) Old 03-03-2008, 09:27 AM
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^^^^Yeah right............

But.........What is plan "B"?

The Federal Reserve's rescue has failed

The verdict is in. The Fed's emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed.

Yields on two-year US Treasuries plummeted to 1.63pc on Friday in a flight to safety, foretelling financial winter.

The debt markets are freezing ever deeper, a full eight months into the crunch. Contagion is spreading into the safest pockets of the US credit universe.

It is hard to imagine a more plain-vanilla outfit than the Port Authority of New York and New Jersey, which manages bridges, bus terminals, and airports.

The authority is a public body, backed by the two states. Yet it had to pay 20pc rates in February after the near closure of the $330bn (£166m) "term-auction" market. It had originally expected to pay 4.3pc, but that was aeons ago in financial time.

"I never thought I would see anything like this in my life," said James Steele, an HSBC economist in New York.

No sane mortal needs to know what term-auction means, except that it too became a tool of the US credit alchemists. Banks briefly used the market as laboratory for conjuring long-term loans at Alan Greenspan's giveaway short-term rates. It has come unstuck. Next in line is the $45trillion derivatives market for credit default swaps (CDS).

Last week, the spreads on high-yield US bonds vaulted to 718 basis points. The iTraxx Crossover index measuring corporate default risk in Europe smashed the 600 barrier. We are now far beyond the August spike.

Sub-prime debt is plumbing new depths. A-rated securities issued in early 2007 fell to a record 12.72pc of face value on Friday. The BBB tier fetched 10.42pc. The "toxic" tranches are worthless.

Why won't it end? Because US house prices are in free fall. The Case-Shiller index for the 20 biggest cities dropped 9.1pc year-on-year in December. The annualised rate of fall was 18pc in the fourth quarter, and gathering speed.

As the graph shows below, US households are only halfway through the tsunami of rate resets - 300 basis points upwards - on teaser loans.



The UK hedge fund Peloton Partners misjudged this fresh leg of the crunch. After an 87pc profit last year betting against sub-prime, it switched sides to play the rebound. Last week it had to liquidate a $2bn fund.

Like many, Peloton thought Fed rate cuts from 5.25pc to 3pc (with more to come) would end the panic. But this is not a normal downturn, subject to normal recovery. Leverage is too extreme. Bank capital is too eroded. Monetary traction eludes the Fed. An "Austrian" purge is under way.

UBS says the cost of the credit debacle will reach $600bn. "Leveraged risk is a cancer in this market."

Try $1trillion, says New York professor Nouriel Roubin. Contagion is moving up the ladder to prime mortgages, commercial property, home equity loans, car loans, credit cards and student loans. We have not even begun Wave Two: the British, Club Med, East European, and Antipodean house busts.

As the once unthinkable unfolds, the leaders of global finance dither. The Europeans are frozen in the headlights: trembling before a false inflation; cowed by an atavistic Bundesbank; waiting passively for the Atlantic storm to hit.

Half the eurozone is grinding to a halt. Italy is slipping into recession. Property prices are flat or falling in Ireland, Spain, France, southern Italy and now Germany. French consumer moral is the lowest in 20 years.

The euro fetches $1.52 (from $0.82 in 2000), beyond the pain threshold for aircraft, cars, luxury goods and textiles. The manufacturing base of southern Europe is largely below water. As Le Figaro wrote last week, the survival of monetary union is in doubt. Yet still, the ECB waits; still the German-bloc governors breathe fire about inflation.

The Fed is now singing from a different hymn book, warning of the "possibility of some very unfavourable outcomes". Inflation is not one of them.

"There probably will be some bank failures," said Ben Bernanke. He knows perfectly well that the US price spike is a bogus scare, the tail-end of a food and fuel shock.

"I expect inflation to come down. I don't think we're anywhere near the situation in the 1970s," he told Congress.

Indeed not. Real wages are being squeezed. Oil and "Ags" are acting as a tax. December unemployment jumped at the fastest rate in a quarter century.

The greater risk is slump, says Princetown Professor Paul Krugman. "The Fed is studying the Japanese experience with zero rates very closely. The problem is that if they want to cut rates as aggressively as they did in the early 1990s and 2001, they have to go below zero."

This means "quantitative easing" as it was called in Japan. As Ben Bernanke spelled out in November 2002, the Fed can inject money by purchasing great chunks of the bond market.

Section 13 of the Federal Reserve Act allows the bank - in "exigent circumstances" - to lend money to anybody, and take upon itself the credit risk. It has not done so since the 1930s.

Ultimately the big guns have the means to stop descent into an economic Ice Age. But will they act in time?

"We are becoming increasingly concerned that the authorities in the world do not get it," said Bernard Connolly, global strategist at Banque AIG.

"The extent of de-leveraging involves a wholesale destruction of credit. The risk is that the 'shadow banking system' completely collapses," he said.

For the first time since this Greek tragedy began, I am now really frightened.

The Federal Reserve's rescue has failed - Telegraph

Hey Jay, Homer Bernanke is singing your song YouTube - 20 versions of D´oh!
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post #17 of 19 (permalink) Old 03-03-2008, 09:46 AM
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OK how about a new plan for this one............

Oil Jumps to New Record on Dollar's Fall

NEW YORK (AP) - Oil prices surged to a new record high Monday as the dollar weakened to another low against the euro.
Light, sweet crude for April delivery rose $1.93 to $103.77 on the New York Mercantile Exchange after earlier rising as high as $103.95. That's higher than the price of $103.76 that many analysts believe oil hit in 1980, when adjusted for inflation into 2008 dollars.

Oil's most recent run into record territory has been driven by the greenback's slump against other world currencies. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.

Oil isn't the only commodity rising on the dollar's weakness—gold, copper and wheat are among the other commodities that have rallied in recent weeks as the dollar has fallen.

"It's coming down to another commodity price rally," said Phil Flynn, an analyst at Alaron Trading Corp., in Chicago.

Other energy futures also rallied Monday. In other Nymex trading, April heating oil futures jumped 6.06 cents to $2.8675 a gallon, and April gasoline futures rose 5.65 cents to $2.7264 a gallon. April natural gas futures gained 20 cents to $9.566 per 1,000 cubic feet.

In London, Brent crude futures rose $2.07 to $102.17 a barrel on the ICE Futures exchange.

Oil Jumps to New Record on Dollar's Fall


I assume it will be alright thou, as long as the US can sell all of that expensive oil and gas to all of those visiting tourists to take home with them.........
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post #18 of 19 (permalink) Old 03-03-2008, 09:56 AM
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Airbus (EADS) and Northrup Grumman just won a huge contract to make the next generation air refueling tanker. So no crying, Airbus.
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post #19 of 19 (permalink) Old 03-03-2008, 10:00 AM
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Airbus (EADS) and Northrup Grumman just won a huge contract to make the next generation air refueling tanker. So no crying, Airbus.

Boeing lost that contract because they bid an inferior product....Maybe too much time spent on the dreamliner and not enough on this refueling rig.......
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