Comments on: Dollar up and stocks down–don’t expect that to continue http://jubakpicks.com/2009/10/28/dollar-up-and-stocks-down-dont-expect-that-to-continue/ Sun, 12 Feb 2012 18:19:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Yclept http://jubakpicks.com/2009/10/28/dollar-up-and-stocks-down-dont-expect-that-to-continue/comment-page-1/#comment-1572 Yclept Thu, 29 Oct 2009 01:08:01 +0000 http://jubakpicks.com/?p=1931#comment-1572 I can't help but think that as inflation picks up in other currencies, it would drive some money into a more stable currency (i.e. the USD), especially given the fact that the dollar is at levels they would see as a bargain. This would be particularly true if the US economy is picking up simultaneously with the inflation abroad. Trees do not grow to the sky. I can’t help but think that as inflation picks up in other currencies, it would drive some money into a more stable currency (i.e. the USD), especially given the fact that the dollar is at levels they would see as a bargain. This would be particularly true if the US economy is picking up simultaneously with the inflation abroad. Trees do not grow to the sky.

]]> By: Has anyone close FHA streamline refinace? :: FHA Home Refinance http://jubakpicks.com/2009/10/28/dollar-up-and-stocks-down-dont-expect-that-to-continue/comment-page-1/#comment-1566 Has anyone close FHA streamline refinace? :: FHA Home Refinance Wed, 28 Oct 2009 21:41:10 +0000 http://jubakpicks.com/?p=1931#comment-1566 [...] Jubak Picks [...] [...] Jubak Picks [...]

]]> By: jeffneric http://jubakpicks.com/2009/10/28/dollar-up-and-stocks-down-dont-expect-that-to-continue/comment-page-1/#comment-1562 jeffneric Wed, 28 Oct 2009 14:50:44 +0000 http://jubakpicks.com/?p=1931#comment-1562 Thanks Jim. As always you are a reasoned voice. Keep up the excellent work. Truly appreciated Thanks Jim. As always you are a reasoned voice. Keep up the excellent work. Truly appreciated

]]> By: waltmiller3 http://jubakpicks.com/2009/10/28/dollar-up-and-stocks-down-dont-expect-that-to-continue/comment-page-1/#comment-1561 waltmiller3 Wed, 28 Oct 2009 14:14:03 +0000 http://jubakpicks.com/?p=1931#comment-1561 "The U.S. Federal Reserve has set its target for short-term interest rates near 0%. That makes sense if you’re a central bank desperately trying to get your national economy going. Especially if three of your biggest problems are a depressed housing sector (low mortgage rates help), a money-losing banking sector (cheap money raises bank profit margins), and a reeling auto sector ( 0 down and 0% interest rate deals help sell cars.)" I must disagree that the central bank policies "make sense". The "3 biggest problems" outlined in your post are being exacerbated, not aided, by lower interest rates. 1) "depressed housing sector (low mortgage rates help)"...actually low mortgage rates perpetuate the irrational pricing levels which prevent them from adjusting to come in line with incomes and savings. Further, the low rates stongly discourage saving - this is exactly the WRONG incentive. 2) "a money-losing banking sector" - Please see your post last week about how banks are not "banking" anymore. 3) "a reeling auto sector" - Please see #1 above. “The U.S. Federal Reserve has set its target for short-term interest rates near 0%. That makes sense if you’re a central bank desperately trying to get your national economy going. Especially if three of your biggest problems are a depressed housing sector (low mortgage rates help), a money-losing banking sector (cheap money raises bank profit margins), and a reeling auto sector ( 0 down and 0% interest rate deals help sell cars.)”

I must disagree that the central bank policies “make sense”. The “3 biggest problems” outlined in your post are being exacerbated, not aided, by lower interest rates. 1) “depressed housing sector (low mortgage rates help)”…actually low mortgage rates perpetuate the irrational pricing levels which prevent them from adjusting to come in line with incomes and savings. Further, the low rates stongly discourage saving – this is exactly the WRONG incentive. 2) “a money-losing banking sector” – Please see your post last week about how banks are not “banking” anymore. 3) “a reeling auto sector” – Please see #1 above.

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