US Presidential Elections thread - the fate of the world to be decided (183 Viewers)
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Dollar falls to record euro low
The dollar has fallen to a fresh record low against the euro, after weak economic data renewed fears that the US economy may be facing recession.
After figures showed a sharp rise in US home foreclosures and another fall in American consumer confidence, the euro hit an all-time high of $1.50.
Traders say the Federal Reserve may have to cut interest rates again, which would further undermine the dollar.
Meanwhile, US crude oil rose $2.20 to a fresh record of $101.43 a barrel.
Five-year low
The latest sign of falling US consumer confidence came from the closely watched Conference Board survey.
It said consumer sentiment fell to a five-year low in February due to growing recession fears.
At the same time, the number of US homes facing foreclosure rose 57% in January compared with the same month of 2007.
Last month the Fed slashed interest rates to 3% as it tried to prevent the US economy falling into recession.
"With so few consumers expecting conditions to turnaround in the months ahead, the outlook for the economy continues to worsen and the risk of a recession continues to increase," said Lynn Franco, a director of the Conference Board's consumer research centre.
US interest rate cuts generally lower the value of the dollar as traders move to currencies with a higher rate of return.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/7265963.stm
Published: 2008/02/26 22:40:32 GMT
The dollar has fallen to a fresh record low against the euro, after weak economic data renewed fears that the US economy may be facing recession.
After figures showed a sharp rise in US home foreclosures and another fall in American consumer confidence, the euro hit an all-time high of $1.50.
Traders say the Federal Reserve may have to cut interest rates again, which would further undermine the dollar.
Meanwhile, US crude oil rose $2.20 to a fresh record of $101.43 a barrel.
Five-year low
The latest sign of falling US consumer confidence came from the closely watched Conference Board survey.
It said consumer sentiment fell to a five-year low in February due to growing recession fears.
At the same time, the number of US homes facing foreclosure rose 57% in January compared with the same month of 2007.
Last month the Fed slashed interest rates to 3% as it tried to prevent the US economy falling into recession.
"With so few consumers expecting conditions to turnaround in the months ahead, the outlook for the economy continues to worsen and the risk of a recession continues to increase," said Lynn Franco, a director of the Conference Board's consumer research centre.
US interest rate cuts generally lower the value of the dollar as traders move to currencies with a higher rate of return.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/7265963.stm
Published: 2008/02/26 22:40:32 GMT
I can't believe there is still talk over whether or not we're in a recession. 
Some people just don't want to face the facts I suppose. Thanks Bernanke and the Bush Administration.
Some people just don't want to face the facts I suppose. Thanks Bernanke and the Bush Administration.
I suppose that people think that as long as you simply deny a recession you can't be in one. On a much less bright note: this happens to be a problem for Western Europe as well.
I suppose that people think that as long as you simply deny a recession you can't be in one. On a much less bright note: this happens to be a problem for Western Europe as well.
When our economy is suffering, that usually means yours isn't doing too well either. It ain't bright anywhere in the west right now.
I suppose that people think that as long as you simply deny a recession you can't be in one. On a much less bright note: this happens to be a problem for Western Europe as well.
and when you can't deny it anymore, you rev up the ol' war machine
nothing better to jump start a struggling economy than a good ol' fashioned war
On a much less bright note?
When our economy is suffering, that usually means yours isn't doing too well either. It ain't bright anywhere in the west right now.
When our economy is suffering, that usually means yours isn't doing too well either. It ain't bright anywhere in the west right now.
Well it most certainly is a good day for that. But barring any other horrendous wars/terror attacks/stupid FED actions, our economy will be on the rebound. We're in a recession right now and it might have already been factored into the markets, which is certainly the case of the US dollar. It can't go much lower than this to be honest.
So yeah, Europeans, reap the benefits right now while you can.
Of course I don't like it, but it's something built into this nation that is just too tough to fix. Moreover, it's not in our economic interest to halt support of Israel for all sorts of reasons, ranging from oil to them being our only real ally in the region.
What I hope for Obama is that he won't cause more harm to the situation and not blindly support Israel in every single debacle that comes up in the Middle East.
So yeah, Europeans, reap the benefits right now while you can.
thats not what he said last night.....
"Israel is our closest ally"
what do you think of that, Andrew ?? Burkie ???
"Israel is our closest ally"
what do you think of that, Andrew ?? Burkie ???
What I hope for Obama is that he won't cause more harm to the situation and not blindly support Israel in every single debacle that comes up in the Middle East.
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