Jim Glazen

Ben Bernanke’s Initiation: Flashback to 1987

It's a common misconception that the dollar will weaken vs. other currencies if we go into a recession.

Looking back at history, currency values fluctuate mainly on relative growth rates in their respective money supplies.

A recession would indicate credit growth has faltered and money supply growth rates have reduced or even gone negative. I would expect the dollar to strengthen under this scenario just like it did during the last recession in 2000-2002.

Ben Bernanke’s Initiation: Flashback to 1987

Fannie and Freddie were up huge today..... [Edited by SA]