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Dollar Falls Below 99 Yen As Bear Stearns Weighs

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NEW YORK (Reuters) - The dollar fell below 99 yen and hit a record low against the euro after Bear Stearns said a worsening cash position forced the Wall Street firm to secure emergency financing.

News that the New York Federal Reserve and J.P. Morgan Chase were to provide funds for the fifth-largest U.S. investment bank signalled more credit turmoil to come and added to investor fears that the economy is in for a long recession.

"People are starting to talk about whether this is a signal of a systematic problem in the U.S. banking sector, and that's why we're seeing selling of dollar across the board," said Greg Salvaggio, currency trader at Tempus Consulting in Washington.

The question on traders' minds now, said Omer Esiner, a market strategist at Ruesch International in Washington, is "which of the other big firms out there need similar funding."

The dollar plunged to 98.91 yen its lowest level in 12-1/2 years, before edging back to 99.310 yen, down 1.1 percent. It was down nearly 11 percent against the yen so far in 2008.

The euro hit $1.5688, an all-time high, before easing to $1.5669, up 0.2 percent. The dollar fell below parity with the Swiss franc for the first time ever, trading at 0.9976 francs, according to EBS, before easing to 0.9984 francs.

Analysts said the dollar is likely to remain on the ropes because the Fed may have to do much more to ease market nerves, either by cutting interest rates even more aggressively or by taking additional measures to inject liquidity

http://uk.reuters.com/article/businessNews...me=businessNews

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As the dollar plummets, the price of a barrel of oil shoots further up, weakening the US consumer and business ever further. Recession in the US is unavoidable and with it the world. The crap that China has been hiding under its duvet and the weakness of its own economic model will also be exposed.

I wonder if the ultimate irony of the 9/11 attacks will be that it encouraged the Fed to drop interest rates to 1% during a fairly healthy economic era and so produced a boom and a bust that far weakened the US more than a motley bunch of Saudi Arabians (or CIA agents with remote control devices - take your pick) could ever achieve with a few 737s pointed at high buildings.

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As the dollar plummets, the price of a barrel of oil shoots further up, weakening the US consumer and business ever further. Recession in the US is unavoidable and with it the world. The crap that China has been hiding under its duvet and the weakness of its own economic model will also be exposed.

I wonder if the ultimate irony of the 9/11 attacks will be that it encouraged the Fed to drop interest rates to 1% during a fairly healthy economic era and so produced a boom and a bust that far weakened the US more than a motley bunch of Saudi Arabians (or CIA agents with remote control devices - take your pick) could ever achieve with a few 737s pointed at high buildings.

china is about to raise interest rates, so much for mercatile approach to economics, they are going down.

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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