Lou Thomas

King Dollar Roars Back

This article just presents data that we already know about the dollar's recent gains and then pastes a big, smiley face of a headline on as the title.

Since, from an anthropological standpoint, I find this behavior fascinating, I decided to look at this author's other recent articles. Here is a sample:

# King Dollar Roars Back

# Adjusted for Growth in the US Labor Force, July's Jobless Claims Are Below Average

# Economic Stimulus Package Boosts Real Disposable Income

# U.S. Oil Production Today Same as in 1948

# Second Quarter Homeownership Rate Has Largest Increase in Four Years

# There's Been Major Deflation for Some Products

And, possibly my favorite:

# Putting $1T Subprime Mortgage Losses in Perspective


This guy must sit in front of his computer all day with headphones on and Bobby McFerrin's famous mantra on infinite repeat.

U.S. Dollar Signaling a Changing Tide?

Oh, and bearfund has a bad attitude. It's one thing to think you are right, but quite another to gloat over everyone else's imagined misfortune. The great mass of people did not create this crisis, even though they may be ignorant of its causes. It was created by an elite investing class that has a lot more in common with you than it does with them, and when they figure out what has happened, they will regard you accordingly.

When the hard times hit, you will need other people more than ever, and whether you know it or not, you need them even now.

U.S. Dollar Signaling a Changing Tide?

Other than precious metals, almost nobody holds actual commodities and waits for them to appreciate. Instead, they place bets on future prices using derivative contracts. And such bets involve counterparty risk.

The present environment is practically screaming with counterparty risk. For a conservative investor, non-dollar sovereign debt would seem to provide a better hedge against the dollar's decline. So, the 80 percent the author says in his comment should go to currency hedges and commodities combined I would say should go straight to the (non-derivative-based) dollar hedges themselves (sans commodities) if one is worried about such risks.