Re: Anyone Else At The Panic Point On The Dollar?
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I always find it interesting when everyone is short the dollar. I have been short for nearly a year now and I am not looking to build my position or anything. Very seldomly has every bit of the media been clamoring the same thing and it to happen as said. I highly doubt that any "crash" or "recession" will live up to current expectations. Eveyone thinks the sup-prime crisis is such a huge issue, but in reality it is only a small part of the housing market.
Although in the last couple of years over 10% of mortagages were subprice, out of all US mortgages, approximately 2% are subprime. Out of these, only approx. 13% have defaulted. So the total mortgage defaults in the US is well under 0.5%. Yes this does hurt some and the issues the banks are having with CDO's and MBS's hurts more, but this in not some catastrophic financial event.
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The real problem is housing itself. You're right that subprime is a small part of the housing market, which just means that it is a small part of the problem. If you think housing as a whole is fine, you should be buying every housing-related stock, since the market certainly doesn't agree with you by a wide margin.
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