Did you read about the US Dollar really strengthening this week because people believe that the US is ahead of everyone else in the economic cycle - and is hence further along the road to recovery? I find it absolutely amazing that the very same people who brought this financial crisis upon us (i.e. investors / speculators) are demonstrating this kind of optimism. My extremely cynical view is that it sucks because it is precisely this kind of gung-ho optimistic behaviour that created the last asset bubble in the first place - and consequently screwed the man in the street over.
The truth of the matter is that market optimism does not change the state of the real economy. No one can run away from the fact that the American banks will suffer from credit defaults in the coming months - people in my line of work just choose not to see it. The sucky thing is that the actions of people in the convoluted financial world do affect the man on the street. I just dont like the idea of false dawns tricking people into thinking that everything is hunky dory when they arent, especially when people need to trade down their standards of living.
Just my personal 2 cents worth...
1 comment:
well, it's really shites now for me what with the US holiday in 2 weeks~~ *sigh*
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