Wednesday, July 14, 2010

Trouble Ahead For The U.S. Dollar

After dissuading people from playing the market right now, likening it to a casino, "The Housing Time Bomb" points to the rising Euro and says it's a portent for the greenback. If the Euro can rise despite the Moody's downgrade of Portugese sovereign debt, then that currency has something going for it. "The Housing Time Bomb" says the currency's trending up because of European government austerity programs. Since it's highly unlikely for the U.S. government to follow suit, that fundamental suggests the greenback's in for a spell of trouble.

Things might get sticky for the U.S. Treasury if the greenback slump continues. Foreign creditors will begin complaining again...

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