NOWHEREMAN

Shipping Index: An Upside For The Dollar?

So you are saying that the dollar which recouped all of its slide this year will lead to the slowing of Chinese production because they will not benefit from lower commodity prices.? Huh!

Or lets say the Saudi's which expect to have a regional currency by the end of next year dump Treasuries (Kuwait no longer accepts Dollars), will the US look the other way if they are threatened. Give me a break. (Ditto S. Korea, Taiwan and Japan.)

The RTC dealt with a finite number of institutions, one knew how much and how many. How many are affected is a total unknown, total cost is also unknown. This is not an apples to apples comparison. Using that comparison is like comparing a peanut to a Pumpkin.

So lets assume that the Bailout occurs. The next shoe to drop will be an increased rate of defaults from Credit Cards to Mortgages and everything in between. Something called the 3 Month LIBOR rate permeates everything from home Equity loan rates, Credit Cards, Student Loans, Small Business Loans etc and everything is on a legacy basis. It closed up around 40% in September.

So lets see 3 Month LIBOR started its rapid ascent when the US Bailout was first announced. It was up around 30% before the House Fiasco and is now up 40% based on the Sept. 30th close. Instead of alleviating anxiety in the Banking sector, it has created more fear.

One thing I do agree fully with, is the assessment of the length of the Bear Market which began in Oct. 2007 and which I think wiil continue to Oct. 2009.