[J. Abizeid]

We are going through some extraordinary times.
Today’s euro fluctuation ranged between 1.4011 and 1.4427 so far.
The dollar boost was not caused by foreign currency sell off but the stock sell off. Investors are parking their stock proceeds in dollars and T bills with lower return until the dust settles. I believe it’s a good opportunity to dump your dollars now.
Last time oil went below $100, the euro fell to $1.36; holding its own above 1.40 today is considered the new euro bottom out from which it will be building upon from now on.

I was pleasantly surprised the bailout didn’t pass the first time. I like to see Paulson and Co. sweat it out before they get it because it might not be the last one. They were hinting this amount might not be enough early on when they thought they are getting it. It is no secret; America’s total real estate bailout could reach 2 trillion dollars.

I consider this bailout blackmail to the American people by their own government.
This administration promised the Chinese and the Europeans they will get their money back even with smaller dollars. The dollar bail out in early august by those nations was part of the deal. They needed to boost the dollar so it can handle the extra $700 billion debt. Paulson said he knew about the problem nine months ago.
This bill must pass because if it doesn’t it will anger the foreign investors and their revenge can be deadly to the US economy. They’ll have nothing left to lose. Germany expressed that loudly few weeks ago. The Chinese don’t talk much…..
There are advantages and disadvantages from passing this bill.
If it doesn’t, it will help the dollar hold its present value in the short term but the real estate will completely collapse.
If it does, it will help real estate hold some of what’s left of its value and the stock market goes up short term but the price will be weaker dollar, higher interest rates and oil prices. That’s what I think will happen in the next few months.