What to Buy as the Dollar Stumbles
Contrarian Profits (December 19th, 2008) Writes:
Here are three things you can buy now to capitalize on spiking unemployment, crashing banks and the tumbling dollar. Earlier this week, Chairman Bernanke and his cronies on the U.S. Federal Reserve did the unthinkable, indeed the unimaginable.
In an effort to demonstrate how serious they are about this whole “recession thing,” they stated that their new interbank loan rate target was zero. Zip. Nada.
When asked if this meant they had run out of bullets, Bernanke implied they could always simply inject money directly into the system by buying billions of dollars worth of Treasury bonds.
This is actually a peculiar thought, because Treasury bonds are the one asset that is actually in demand these days (whereas dollar demand is actually rather tepid).
In fact, Chairman Bernanke’s rather alarming statement caused the U.S. dollar to fall against the euro by the biggest amount in
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