Nikola

Currency Market Predicts Bailout Is the End of the Credit and Housing Crunch

I like this disease metaphor. Let me restate what I think you are saying.

You are saying that because another bird flu patient now also has fever, the original patient is gonna get only better from here on.

Currency Market Predicts Bailout Is the End of the Credit and Housing Crunch

Wishful thinking.

The dollar didn't "rise" against the Euro. The Euro FELL against the dollar, as the financial crises finally started showing in European economies (GDP growth & inflation in power houses like Germany, France, Italy, UK).

That's a big difference in perspective. That's like saying "dollar rose vs the Zimbabwean dollar, so we are at the bottom of the housing correction."

Compare the dollar to a stronger currency, like the Chinese Yuan: finance.yahoo.com/curr...

Barely any difference. Stopped falling. But the dollar may yet rise against the CNY too, as the Chinese economy numbers are not out yet. China will be hit too.

What is happening is that the chaos in the US is spreading around the world like a disease. When Americans stop buying, it hurts everybody. But just because others are showing symptoms doesn't mean anything significant has happened to Patient Zero.

Whether the bailout will succeed to persuade Americans to get out to the Mall and start shopping remains to be seen.

And I really don't know where you see the housing "demand on the sidelines"? You talking about all the subprimers who got foreclosed and now want a new chance? I hope they don't get one..... we're where we are because of them.