U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-01-2008, 12:32 PM
 
Location: Arizona
19 posts, read 65,804 times
Reputation: 11

Advertisements

Hello,

I've only become recently interested in all of these goings-on, maybe the last year or so, so forgive me for my question.

I was always taught that when the government pumps dollars into the system, like the 630 billion they pumped in on Monday or Tuesday, that the dollar would decrease in value. However, I've been noticing on the tickers that the dollar is actually rising against the Euro. How can that be?

Is it that both are falling, but the Euro is falling FASTER? Any explanation would help shed some light on everything that is happening.

Thank you!!!
Reply With Quote Quick reply to this message

 
Old 10-01-2008, 12:35 PM
 
Location: Sverige och USA
702 posts, read 2,755,687 times
Reputation: 417
Just read an article on this. The dollar is rising because the economy is horrible, which means fewer imports, and an easing of the trade deficit. Another support for the dollar is the weakening economies in Europe. If the bailout passes then there may be pressure on the dollar.

Stronger dollar? Believe it. - Oct. 1, 2008
Reply With Quote Quick reply to this message
 
Old 10-01-2008, 12:42 PM
 
Location: Arizona
19 posts, read 65,804 times
Reputation: 11
Default Thanks!

Fascinating. Thank you very much for that article!
Reply With Quote Quick reply to this message
 
Old 10-01-2008, 12:45 PM
 
Location: Backwoods of Maine
6,943 posts, read 7,696,720 times
Reputation: 17866
Quote:
Originally Posted by lifeisbigger View Post
Is it that both are falling, but the Euro is falling FASTER?
You answered your own question right there!
Reply With Quote Quick reply to this message
 
Old 10-01-2008, 01:08 PM
 
1,956 posts, read 4,687,117 times
Reputation: 1101
Quote:
Originally Posted by Nor'Eastah View Post
You answered your own question right there!
Right. Europe's problems, while not well covered, are probably just as serious if not more so than in the U.S. The problem is that when Europe's economies get into trouble, it always takes them much longer to turn around. In the U.S., turnaround is always much faster, as our economy is much more soundly structured in that regard. Europe, by and large, is much better structured for stability and making sure people don't fall through the cracks, but that makes recovery all the more difficult for them.

The global economic downturn will affect Europe much more adversely than the U.S. and for much longer. That's why you see a stronger dollar, even though the dollar is of course worth less than it was yesterday.
Reply With Quote Quick reply to this message
 
Old 10-01-2008, 01:12 PM
 
Location: RSM
5,113 posts, read 17,071,265 times
Reputation: 1884
the government may have pumped hundreds of millions into the economy the past week or two, but we've also lost over a trillion in market value as well
Reply With Quote Quick reply to this message
 
Old 10-01-2008, 01:36 PM
 
3,460 posts, read 4,804,375 times
Reputation: 6677
Quote:
Originally Posted by bhcompy View Post
the government may have pumped hundreds of millions into the economy the past week or two, but we've also lost over a trillion in market value as well
That was in one day, and it jumped back up to regain over half of it the next day. That number also includes sovereign wealth funds and all the other foreign investors. Its also only a loss if you panicked and sold.

Yes there was a big scary drop one day, but overall, the DOW is down 350 points from where its been trying to trade all year. In the meanwhile, oil is down since the bailout failed, which will help to curb the rises we've been seeing in our costs of daily living.

If they do pass a bailout bill, get ready for more pain at the pump....and the grocery store....and all the other things you spend money on every day.
Reply With Quote Quick reply to this message
 
Old 10-01-2008, 02:13 PM
 
5,092 posts, read 9,624,765 times
Reputation: 3941
Quote:
Originally Posted by sterlinggirl View Post
That was in one day, and it jumped back up to regain over half of it the next day. That number also includes sovereign wealth funds and all the other foreign investors. Its also only a loss if you panicked and sold.

Yes there was a big scary drop one day, but overall, the DOW is down 350 points from where its been trying to trade all year. In the meanwhile, oil is down since the bailout failed, which will help to curb the rises we've been seeing in our costs of daily living.
Don't forget that with the 10% annual drop trend line in real estate, sectors even larger and more meaningful than the [silly] stock market are heading downward. This is orders of magnitude more downside risk than just the stock market. Been shopping real estate lately, but watching the price fall right in front of me while checking it out.

Quote:
If they do pass a bailout bill, get ready for more pain at the pump....and the grocery store....and all the other things you spend money on every day.
Helicopter Ben may be correct -- Deflationary Depression ahead. Means most everything is down -- and in the long run that includes paychecks.
Reply With Quote Quick reply to this message
 
Old 10-01-2008, 03:28 PM
 
Location: Arizona
19 posts, read 65,804 times
Reputation: 11
Default Thanks again!

Thanks again for all of your insightful answers!

What would cause a deflationary depression?
Reply With Quote Quick reply to this message
 
Old 10-01-2008, 04:29 PM
 
281 posts, read 384,706 times
Reputation: 263
The strong Euro has been seriously hurting European companies anyway, might be good for them?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top