Dollar Falls as Bailout Plan Erodes Confidence in US Finances

Discussion in 'Politics' started by JustChristian, Sep 22, 2008.

  1. JustChristian

    JustChristian
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    Dollar Falls as Bailout Plan Erodes Confidence in US Finances

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aE5sJ5ypmTnQ&refer=home

    Sept. 23 (Bloomberg) -- The dollar fell for a second day against the yen on concern a U.S. proposal to buy $700 billion of troubled assets will erode investor confidence in the nation's finances.
    The greenback weakened for a fifth day against the euro, its longest losing stretch since February, as Treasury Secretary Henry Paulson's plan would increase the nation's debt ceiling by 6.6 percent to $11.315 trillion. The currency also fell before U.S. reports this week that may show home sales slowed, adding to the case for the Federal Reserve to lower interest rates.
    ``Obviously there are genuine concerns over the sustainability of the U.S. fiscal position,'' said Tony Morriss, a senior currency strategist at Australia & New Zealand Banking Group in Sydney. ``This week the dollar will remain under pressure.''

    ``That Treasury plan will not be a one and done,
    '' said Kenneth Rogoff, an economics professor at Harvard University and a former chief economist at the International Monetary Fund. ``It's just the first step on the long road of bailouts with ever-rising costs especially when it works through its way out of the political process. That's going to hurt the dollar.''
     
  2. Revmitchell

    Revmitchell
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    I didnt see it today but the stack market immediately made record setting recovery upon the announcement of the bail out. Which is in stark contrast to this. Rather odd.
     

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