Buck Gains Against The Euro
Mar 2nd, 2009 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar gained against the euro. Late Friday, the euro was trading at $1.2668 vs. $1.2735 on Thursday.
“Today the dollar is once again emerging as the ultimate fantasy island survivor as more currency traders cast their votes against any remaining contenders,” said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Greenwich, Conn.
While Mr. Wilkinson’s comment is true for now, there’s no telling how long this will last given the expansion of the monetary base we’ve seen recently.
Now, here’s some economic news from Friday… and you probably guessed, it’s bad.
The nation’s economic slide during the last three months of 2008 was even sharper than previously estimated, with the broadest gauge of economic activity suffering its worst decline in 26 years, the government reported Thursday.
Gross domestic product, which measures the output of goods and services produced in the United States, fell at an annual rate of 6.2% in the fourth quarter, adjusted for inflation, according to a preliminary report from the Bureau of Economic Analysis.
Unfortunately, Citigroup (NYSE:C) was back in the news on Friday… oh no!
The banking giant announced a stock swap that if successful will leave the government owning 36% of the company and wipe out almost three-quarters of existing shareholders’ stake.
Kevin Kingsbury and Maya Jackson Randall of the Wall Street Journal correctly remarked, “the move is an acknowledgment that more than $50 billion in government capital and a backstop on more than $300 billion in troubled Citigroup assets haven’t been enough to stop the bank’s slide.”
Perhaps the most amazing tale to tell about the Citigroup situation is that CEO Vikram Pandit is expected to keep his job after an overhaul of the company’s board of directors.
Source: Buck Gains Against The Euro
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.