Does the Dollar Need Some Designer Drugs?
What's up with the US dollar? It's been falling. OK. We know that. And everyone's saying it's maybe going to "collapse" another 20% - 30%.
But we also know that when too many people run to the same side of any trade - in this case the dollar falling - then it's time for a correction. So it's really time for the falling dollar to reverse and head up.
And, sure enough, it's made some fits and starts. In fact, right before the Fed's November 3rd "quantitative easing" announcement, it was looking like now would be the time for it to go up. I mean, it sure was looking that way.
Now, you'd think that the Fed saying they were going to "print" more money (with their quantitative easing) would tank the dollar. But markets don't really work like that. The currency market had already "priced in" some of that QE stuff. That's why the dollar had slid for a while. So the theory was that once the announcement was made, the dollar - having already gone down in anticipation of more printing - would bounce back.
But after the announcement the dollar just kind of sighed and drooped.
If the Fed had announced anything surprising, I could understand. But it was pretty much what people expected. Oh, maybe a little more. People were saying they'd announce $500 billion being printed over the next 6 months. The Fed said they'd do $600 billion over 8 months. Six of one, half dozen of the other, if you ask me.
Therefore it was time for the dollar rally all the really smart folks said was coming.
So now that the dollar drooped anyway, I'm thinking maybe it's just depressed and needs something to pep it up. You know, the way so many of us today take those designer drugs that "enhance" our moods. We're all so anxious and wound up these days, that doctors are quick to give us "something" to make us feel better.
Maybe the dollar's caught in some sort of depression or just some kind of sad mood. Maybe it needs Paxil or Zoloft, or something like that.
Or maybe more of us need more of the drugs. And that will get us to bid up the price of the dollar. Yeah, maybe that's it. Maybe too many of us aren't taking our meds. Maybe if more of us took our meds, we'd be happier and look at the dollar a different way.
Instead of seeing a currency issued by a bankrupt government, we'd see something happy. I don't know exactly what that might be, but it would be happy.We'd be happy, the dollar would look like something happy, and we'd bid it up.
Makes sense to me. What, you don't think so? You think I'm being silly, or facetious or something? Well you tell me what it would take to bid up the dollar. Give me some sort of "rational" reason. C'mon, I'm listening.
Well, it's only Thursday. Maybe today, maybe tomorrow, maybe next week we'll get that dollar rally. Hey, no one said markets were rational, right?
But we also know that when too many people run to the same side of any trade - in this case the dollar falling - then it's time for a correction. So it's really time for the falling dollar to reverse and head up.
And, sure enough, it's made some fits and starts. In fact, right before the Fed's November 3rd "quantitative easing" announcement, it was looking like now would be the time for it to go up. I mean, it sure was looking that way.
Now, you'd think that the Fed saying they were going to "print" more money (with their quantitative easing) would tank the dollar. But markets don't really work like that. The currency market had already "priced in" some of that QE stuff. That's why the dollar had slid for a while. So the theory was that once the announcement was made, the dollar - having already gone down in anticipation of more printing - would bounce back.
But after the announcement the dollar just kind of sighed and drooped.
If the Fed had announced anything surprising, I could understand. But it was pretty much what people expected. Oh, maybe a little more. People were saying they'd announce $500 billion being printed over the next 6 months. The Fed said they'd do $600 billion over 8 months. Six of one, half dozen of the other, if you ask me.
Therefore it was time for the dollar rally all the really smart folks said was coming.
So now that the dollar drooped anyway, I'm thinking maybe it's just depressed and needs something to pep it up. You know, the way so many of us today take those designer drugs that "enhance" our moods. We're all so anxious and wound up these days, that doctors are quick to give us "something" to make us feel better.
Maybe the dollar's caught in some sort of depression or just some kind of sad mood. Maybe it needs Paxil or Zoloft, or something like that.
Or maybe more of us need more of the drugs. And that will get us to bid up the price of the dollar. Yeah, maybe that's it. Maybe too many of us aren't taking our meds. Maybe if more of us took our meds, we'd be happier and look at the dollar a different way.
Instead of seeing a currency issued by a bankrupt government, we'd see something happy. I don't know exactly what that might be, but it would be happy.We'd be happy, the dollar would look like something happy, and we'd bid it up.
Makes sense to me. What, you don't think so? You think I'm being silly, or facetious or something? Well you tell me what it would take to bid up the dollar. Give me some sort of "rational" reason. C'mon, I'm listening.
Well, it's only Thursday. Maybe today, maybe tomorrow, maybe next week we'll get that dollar rally. Hey, no one said markets were rational, right?
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