Fed has to crash the market to get this economy going UP UP UP
The dollar is crashing, yet CAT and IBM and MCD are rising up in share price? Why is this important? Because all three of these companies are putting out that their forward expectations into la la land heights, is based on their overseas operations and mainly in China. If the dollar is weak, then it is good for these blue chip companies. God only knows they won't be making any forward earnings here in the US. And the stimulus that CAT spoke of this morning was China's not ours. (And this is what Paulson did for two years so we wouldn't realize we were in the crapper before he and Bush left office, not to mention that CAT's CEO was a huge campaign contributor to Bush, but ha ha the joke was on ALL of us now wasn't it).
But some bigger problems come out of a falling dollar: 10 year Treasuries and rising commodity prices. The dollar remains weak the 10yr rises in yield because no one wants to buy our debt with a weak currency. What is riding on 10yr? Mortgage rates are pegged to the 10 year and if any one of these lame brain economists thinks that housing is the issue for our long term future growth (which it is by the way), then they had better start telling Helicopter Ben to get back in there and start buying our dollars again. Yes, we buy our own currency. NUTS ain't it? And let's not forget those pesky higher oil prices which lead to stagnant growth due to no jobs, no driving cause we can't afford a car anymore let alone the gas, to only the likes of GS and JPM getting rich while keeping their oil off shore in those big giant cargo ships held offshore until the "recovery" in end of year 09 when they can jack up oil to $150 again. Woo hoo......
What is Ben supposed to do? Watch for the stock market to come crashing back to 850 as soon as earnings season over next week. Otherwise the housing market statistics coupled with rising unemployment AGAIN, will make this September look eerily close to last September.