Us Dollar Worth Less Then Swiss Franc

[Von Milash]

as soon as congress irons out the subprime issue and all that bad debt has flushed itself from the system, the dollar should, SHOULD come back at leaset somewhat. other problems beyond that (ie, the war) this is the main issue right now for its drop in value.

How does congress fix the subprime debt problem, and even if they could wave a magic wand how does fixing subprime debt change the overarching reasons why the economy is screwed ?

The dollar is screwed because the fed has printed historic quantities of dollars over the past seven years to ameliorate any economic bumps in the road and has thrown epic levels of liquidity at the markets, also because the US has huge twin deficits and no fiscal credibility with creditors and forex markets. Subprime is a drop in the bucket as far as the weak dollar is concerned.

Subprime is the main culprit. The US can say fuck you china, what trade deficit. congress didn't create the problem per se, but a lack of regulation in the housing market coupled with historically low rates b/c of 9/11 did this.

[Kirkland Laing]

as soon as congress irons out the subprime issue and all that bad debt has flushed itself from the system, the dollar should, SHOULD come back at leaset somewhat. other problems beyond that (ie, the war) this is the main issue right now for its drop in value.

How does congress fix the subprime debt problem, and even if they could wave a magic wand how does fixing subprime debt change the overarching reasons why the economy is screwed ?

The dollar is screwed because the fed has printed historic quantities of dollars over the past seven years to ameliorate any economic bumps in the road and has thrown epic levels of liquidity at the markets, also because the US has huge twin deficits and no fiscal credibility with creditors and forex markets. Subprime is a drop in the bucket as far as the weak dollar is concerned.

Subprime is the main culprit. The US can say fuck you china, what trade deficit. congress didn't create the problem per se, but a lack of regulation in the housing market coupled with historically low rates b/c of 9/11 did this.

Subprime debt has almost nothing to do with why the dollar is tanking. It's just the part of the current financial crisis that you're aware of, but the dollar is falling for the reasons I already posted. China is America's reserve banker -- if you told the bank holding your mortgage papers to fuck off, would that be a smart move ?

It's not the housing market that needs regulation, it's the financial system.