Maybe you guys can answer this question; Gray, i'm interested to hear your response in particular.
The U.S. dollar: It's continually strengthening across world markets, but why? Is there some sort of good news about the U.S. economy I've missed? Is the U.S. tax code suddenly more capital friendly? Are national levels of wages and household incomes rising? Is the labor force suddenly more focused on producing goods that the world wants to buy by the boatload? Are government expenditures suddenly under control? Really, where's the good news? For two months now the dollar has been strengthening.. I must be missing something.
Also, the U.S. government just seized Fannie and Freddie. Don't these firms count as major banks, what with their $5 trillion and more of liabilities? They're both too big to fail, yet too big to bail. Really does anyone have a spare $5 trillion lying around?
The US Fed, (Mattk) is socializing the financial side of the US housing market. That is a disastrous move, that doesn't stablise the markets. It gets everyone high, has a good trip for a few hours, then comes crashing down.
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