What happens to the Dollar in a crash? - page 2

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iGoR:
And to all you americans, buy buy buy, borrow borrrow borrow, lend lend lend

Igor this statement is plain stupid and very very ignorant. I give that it is late and perhaps there has been too much to drink for you. You clearly live in an utopist place where everything is perfect to make such a statement. I may not live in a perfect place but I am proud of it. I guess the last two years have taught you nothing and you can only see that the US has problems.

Salute Iggy

 

Every country had a problems but those problems begun in USA.

 
KingPersian:
Every country had a problems but those problems begun in USA.

Greece hiding debt began in the US??? And the list could go on and on. It is more the point of someone making generalizations and looking down their nose. This thread was looking for tech. answers to a question and not degrading personal crap. That’s what I was responding to as most people do when their homeland is being made fun of. There isn’t a country out there that hasn’t had their problems over time. This will be my last comment on this.

Enjoy the weekend.

 

That Zeigeist thing is crazy like hell

 
CheckDavid:
That Zeigeist thing is crazy like hell

Yes It is but that is how capitalism works

For those who English is not their native language and don't understand it that good (because it can sound complicated) then if you do a search you will find the movie subtiteled in 14 different languages.

Friendly regards...iGoR

 
iGoR:
Yes It is but that is how capitalism works

For those who English is not their native language and don't understand it that good (because it can sound complicated) then if you do a search you will find the movie subtiteled in 14 different languages.

Friendly regards...iGoR

Thanks for the suggestion, though it's not a problem for me at all, and I really enjoy the narrator.

Physical Slavery requires people to be housed and fed, Economic Slavery requires people to feed and house themselves ...

WOOW

 

Dollar Correlation

iGoR:
The chart shows the correlation between the S&P500 and the dollar.

The more the line it is above the zero line the more correlation there is between the stock markets and the dollar and the more bellow the zero line the more inversed correlation the 2 instruments have.

As you can see the chart I posted can not be a better text book example of randomness. If one wanted to claim that their is correlation between the dollar and stock markets then we should see at least that the chart line needs to be most of the time above the zero line ( correlation) or most of the time bellow the zero line (inversed correlation) Which is defeniatly not the case. Again pure randomness. And severall crashes have happened during that 40 year period.

The conclusion one can make on the question: what will the dollar do when stockmarkets crash is as important or valuable as asking what will the price of platinum do when the grain market would crash....

Friendly regards... iGoR

From looking at the chart there doesn't appear to be a correlation between a crash and the dollar. However, when you study the economics and socionomics behind each crash there is always a correlation. Each crash has an underlying cause and a trigger. That underlying cause combined with the social mood at the time are what determine the direction the dollar moves after the crash (the dot com bust, the housing bubble, computer glitches such 1987, etc). Hence, I started this thread to get opinions based on our current conditions.

And what might some of those be? We have a global credit bubble of $1,000 Trillion dollars that is trying to deflate but, is currently being propped up by all the central banks printing funny money. The problems with Spain, Portugal, Italy, Ireland, and Greece have not evaporated...they are just being ignored. 43 of the fifty states of the U.S. are in as serious financial condition as the aforementioned countries with economies as large or larger. China has a massive housing bubble. Japan who has the third largest economy in the world has indebtedness as a percentage of GDP that dwarf's the indebtedness any other nation on earth. Trillions of dollars of mortgaged backed securities were sold without legally recording the underlying mortgages causing investors to consider the worthlessness of all the toxic securities marketed in the last ten years. Plus many other possibilities you might think of.

So choose of one of the possible causes for a possible crash and take your best guess as to what the dollar would do. Or tell me there is not a snowball's chance on a hot grill of a crash happening soon. I am really interested in your opinions because that helps determine social mood.

Kind regards,

gcgman

 
gcgman:
......................

So choose of one of the possible causes for a possible crash and take your best guess as to what the dollar would do. Or tell me there is not a snowball's chance on a hot grill of a crash happening soon. I am really interested in your opinions because that helps determine social mood.

Kind regards,

gcgman

Hi gcgman,

If one of the possible causes you mensiond will trigger a crash but one still needs to gues what the dollar will do, would it not be better to go short on the stockmarkets if the direction of that crash does not need to be guessed ?...

Friendly regards... iGoR

 

Thanks

iGoR:
Hi Homestudy,

I am truely sorry Homestudy but it was not my intention to laugh with the US or get down on the US.

The measures the FED took is to make it easier for people to lend money or buy on credit.

When people lend money it is to buy goods.

The more they buy the more the economie will grow again.

That was why I said that they should buy and lend and borrow because if they don't that will create no counter weight to the 600billion dollar they are going to print.

That will cause a hyper inflation in the US. And if it rains in the US then it drips in Europe.

I hope this clarifys and that I did not want to bash on the US.

Friendly regards...iGoR

PS. I like a cool beer now and then but my beers had no influence on my posting.

Thank you iGoR I too am sorry for over reacting. I misinterpreted what you wrote. I agree it would be nice to have the credit markets thaw a bit.

Have a great weekend.

 
homestudy:
Thank you iGoR I too am sorry for over reacting. I misinterpreted what you wrote. I agree it would be nice to have the credit markets thaw a bit. Have a great weekend.

You too...have a nice weekend.

PS. How much better can it get on a forum.... the older we get or the longer we stay on a forum we start to understand that we can misunderstand each other.... as sir Oliver said to Catherine Hepburn in some movie: grow old along with me, the best is yet to be

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