Anyone Else At The Panic Point On The Dollar?

[Mort10]

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If everyone already knows that the dollar is going to get weaker, the price would already be at that weaker level. For every person who sells a dollar, there has to be someone on the other end who is buying. If we all know its going weaker who is going to be buying? In 2005 for example, the US was still the same debt machine that it is today, but the dollar had a pretty good bounce. If that happens in 2008, and you buy today you'll be screwed.

The point is, no one really knows. Its good to stay diversified.

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Of course this is true however, there are a couple of reasons why I would not hold dollars. First of all, I think the Fed is doing a horrible job and I am pretty sure that the numbers they are providing are not true. In other words I think the situation is worse than they say. Second, the reason the dollar has stayed strong is because of the foreign investments. However, I think partially due to the weakening dollar and partially due to the turmoil in the financial markets foreign investors will invest in what they perceive to be less volatile markets such as the eurozone. All in all I think this will lead to further depreciation in the dollar. At least that's the way I see it.