Fed Bailout Will Create Weaker Dollar, Higher Commodity Prices

One outcome of the government’s massive $700bn to potential $1 trillion dollar bailout package is that flipping on the switch for our currency printing presses will anchor the dollar and make it difficult for the Fed to raise rates during the management of a financial crisis. This creates market conditions for a weaker dollar which favors higher prices for commodities, e.g. energy, agriculture, and precious metals. Another beneficiary of such inflationary measures may also be real estate, i.e. hard assets. Believe it or not? Ask Ripley’s…

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Comments

[buyitcheap:]

Author - would it not also follow that the foreign markets would rise as the dollar fell back through 72 and on down? If so, then a rotation BACK to EEM, and the various international ETFs and funds would make sense.

2008 Sep 22 01:43 PM

[MarvinMBA:]

Let the junk bond holders rework the real estate and assets they acquired like everyone else that holds secure paper. Why bail them out? This is a raid of our very lives and existance and Congress is destroying the US if this giveaway deal to the holders of this paper proceeds. They were never promised a guaranteed investment.

2008 Sep 22 04:07 PM

[2-cents:]

Thank you Americans.

2008 Sep 22 09:04 PM

[NYM Arts:]

Absolutely ALL of the People invovled in the Scamming of Homebuyers MUST be put into labor camps, where they will be Worked Until their Nautural Deaths.
ALL of their Worldly ILL - Gotten Possessions MUST be "Liberated" Back to the American People. Amen

2008 Sep 23 08:22 AM