A couple of good ones from Chuck in today’s Daily Pfennig:
Well… How about that U.S. dollar? That’s some currency Rudy! Why, look at it rallying against the euro and other currencies as if it’s on a mission from God! It looks as if the U.S. has turned things around… The Deficit no longer needs to be financed with over $2 Billion a day in foreign investment… Interest rates are where they need to be to fight this soaring inflation… The Government has stopped spending wildly, and the Budget is balanced… The mortgage lenders have recovered all of their losses… There is no longer a credit crunch… And finally, the war is the Middle East is over…
But Wait! Unless I pulled a Rip Van Winkle and slept through all of that… These things haven’t happened, nor do they look as though they might begin to happen any time soon! So, what the heck has the dollar bulls dancing in the streets swinging a mighty hammer?
And on the carry trades:
The U.S. stock market has been on a feeding frenzy since the rate cut on Wednesday… All this euphoria in stocks has the Carry Trade going great guns once again… This is being reflected in the price of yen and Swiss francs… I just don’t see how this can continue to go on and on and on… The Carry Trade has longer lasting power than the Energizer Bunny! But one day, it will all come crashing down like a house of cards… At least that’s my opinion…
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