This Friday’s shoot-the-shit topic attempts to make some sense of the very recent 295+ point loss on the DOW due to a strengthening dollar against the euro. If you ever wanted to know where Wall Street’s head is at, recall that falling oil prices and the subsequent falling prices at the pump resulted in wrist slicing and chronic flatulence. You’d think the speculators that bid up futures wouldn’t object to consumers having a bit more disposable income.
Well, just a few days ago we saw the euro, for the first time in quite a long time, dip against the dollar – I think yesterday’s number was about .845 euros = $1.00. So, again we saw Wall Street slashing their wrists but this time because U.S. products, denominated in USD, will be more expensive on the world market and companies will export less. That’s a valid concern if Europe were consuming and EU businesses making capital investments, but they haven’t. So, WTF is wrong with a strong dollar kick starting some good ole fashioned macro economic consumption…
Have a great weekend everybody. Be safe, be interesting and be relevant.