And the libtards continue to demonstrate their retardation by complaining about the falling dollar!

A failing dollar makes our exports more competative on the world market.

From a consumer standpoint, it makes luxury goods from Europe more expensive, ie, Mercedes, BMW, european vacations, French wine, etc etc. Maybe that's why the limousine liberal are complaining. Joe sixpack is unaffected.

And now it turns out that Europeans are begining to jump into our real estate market, and our stock market, which they recognize as a bargain.

CH

The falling dollar is great. It is making a huge difference.

Sorry, can one of you explain why a falling dollar is a good thing? Further more, can anyone explain how high foreclosure rates, a stagnant housing market (with falling prices) a volatile stock market, record default rates, dual deficits (trade and budget), and a negative savings rate are at all indicative of a strong economy?

It's not bad, per se... you guys are just looking at a few favorable indicators and yelling out, "THE ECONOMY'S AWESOME!!!!!!!!!!!!!"

Well, say that in a few years when lower savings rates now (which limit investment in new capital) cause all of our consumption to decrease in the future...

Sorry, can one of you explain …

CERTAINLY! The falling dollar makes US products more reasonable priced overseas, increases the cost of imports and encourages the World to Buy American. It increases the amount the Fed must hold in trust, but lowers the actual amount of payout on the instruments already issued.

Housing is but one sector in the economy, if you don’t like this one, don’t put your money there.

Federal Deficit is closing and Trade deficit doesn’t cost the economy one red cent. Quick, how much of the deficit with China is your responsibility? Are you going to send the $212.18 to Hong Kong or Beijing to settle your trade deficit?

The volatile stock market has been one helluva ride, I’ve made a boatload of money, thanks for your (and 3moreyears) frail nerves getting shook out in the last correction. Them that make the wealth appreciate the lemons you’all are making out of the sweet sweet lemonade.

How many un-favorable indicators are you looking at? ‘Cuz all I see is more of the same as far as the eye can see.

You’all have been cryin’ the blues about savings for 30 years now, and we have more investment capital than at any time in our history.

Bane, I think the Frog's comments and questions reflects the uncertainty, particularly among public observers (including both investors who follow the market closely as well as pundits who report analyze and/or report on the market) of the market and the economy. To give you a really simple (probably too simple) example, I visit MarketWatch.com before anything else first thing each morning and periodically throughout the day. This morning, about 90 minutes before the market opened, one of the headlines read "Stocks set to open lower". When stocks opened higher, the headline was changed to read "stocks set to open higher". Similarly, you will see the same phenomenon (retail sales, price of oil, home sales, etc.) used to rationalize a move both up and down during the course of the same day. How many times have you read something like "stocks move higher in spite of bad news or lower inspite of good news.

When a college student like the Frog reads stuff like this, all he sees is volaltility and uncertainty. In reality, what it reflects is that there are just a whole lot of people who don't know what the hell they're talking about, resulting is even more people repeating something they read that either played into their innate fears or worldview, regardless of whether or not it's true or accurate. Misinformation, particularly of the gloom and doom type, tends to feed off itself.

A falling or rising dollar is a zero sum game, you trade dollars for goods and services, and as the dollar changes values, there's still the same amount of goods and services. Volatility in the dollars just creates a hidden transfer of wealth depending on wether your an importer/exporter, lender/borrower, dollar/comodity holder, ect...

As long as we have a relatively free market, it can't get that screwed up, and if it does, no one, or very few people, will see it coming(otherwise they would step in, profit, and smooth out the curves).

We do however have an impending government financial crisis when social securtiy becomes insolvent in about 10-15 years. And when they screw up they don't just go out of buisness and go away. They just tax the hell out of everyone. It's the one institution capable bringing the whole nation down with it.

Spook,
I think that’s Larry’s point, I know you’re old enough to remember the halcyon days I referred to in the other post. Things looked mighty bleak in 1979-1980 and Carter went on TV to tell us that we’d better get used to misery, poverty, despair, and breadlines. Reagan came along and by sheer will convinced us that we had the ability to stop the slide; shining city on a hill and all that. Wall Street and Main Street began to pull themselves out of the doldrums and the economy began an expansion that continues to this day.

Will there be downs to the ups? Of course! Are all the indicators positive? Of course not. Overall do we have a possibility of continuing the unprecedented gains? AB-so-LUTE-ly!

I’m gonna continue on this ride until the brakeman pulls us into the station, I’ll harbor a small amount in Bonds (against my investment analyst’s advice) and hold off on buying silver bullets for another few years.

Speaking of which, remember Dan Akroyd on SNL doing Jimmy Carter in a sweater telling the TV audience, Inflation is your friend. Haven’t you always wanted to own a $4,000 suit? Live in a million dollar home? Well, now you can!” The same suit that cost $100 is now going to cost you $4,000, and that $100,000 home? Guess what!

I know you’re old enough to remember the halcyon days I referred to in the other post.

I remember those days well, Bane. I made my first IRA contribution in 1979. There was, however, a silver lining to Carter's malaise and misery index -- for a brief period of time money market funds were paying 16-18%. Now if you needed to get a mortgage at that time (fortunately I didn't), or if you had an ARM, then you were up the proverbial creek.

Overall do we have a possibility of continuing the unprecedented gains? AB-so-LUTE-ly!

Just as the Dems are attempting to snatch defeat from the jaws of victory in Iraq, I wouldn't put it past them to do the same thing with the economy if they gain complete control next year.

Spook,
Sadly, liberals, students, and day traders want guarantees that nothing will ever happen to the determent of their investments; it just don’t work that way; take your risks, enjoy the rewards or feel the pain. If Frawg wants insured returns he should put his $$ in a 2% CD. Can I be wiped out because I’m taking a risk? Assuredly! But, I prefer the ten-thousand foot view; from up here the daily fluctuations, binges and purges, highs and lows are barely visible; down in the trenches they make for an exhilarating ride if you have the stomach for it.

I went to that website you mentioned; Christ, do these people have Kevorkian on speed-dial? If I were that sure of impending disaster I’d chuck it all right now and move into a cave in the Santa Rosas. Seriously, everyone I know wants to be the first to know whatever is the gossip d’ jour. There’s no fun in predicting that the market is headed for more of the same or that next year will look just like last year. But, predict that the sky is falling, the world is one bad day from the apocalypse, and plagues of Biblical proportions, cats sleeping with dogs and Viola … you’ve got an audience!

Do you suppose I’ll still be able to get Cubans when we're using clamshells as currency?

God bless you President Bush for presiding over the strongest economy in american history. And all the while incurring the cost of keeping us all safe for over 6 years and fighting World War III. President George W. Bush, the greatest president in american history.

Do you suppose I’ll still be able to get Cubans when we're using clamshells as currency?

Sure you will, DL; however, you'll be taxed an additional 10 shells to help fund the Graeme Frost SCHIPS program...

Spook,
Just spoke with my analyst, here's what he's recommending:
get out of stocks; blend equities, low risk and emerging market. Maybe I’ll get back in an emerging market fund. "If history is any indication of the future performance of the market, the market should not be back on the upswing for several more years (since the bust a couple of years ago)." But, is the ride over for now? I donno, stay tuned ...

keef,

How much is a 10% increase on clamshells? One butter and two pukas?

Rana is simply longing for the economic utopia [18% inflation] and 'peace' of the Carter years. What a diplomat, and good buddies with Arafat and Chavez to boot. And his honored guest at the 04 Dim Convention, Michael Moore! And Nobel 'peace' guys who are responsible for the lasting peace in the Middle East. Or the bubble economy of the Clinton dot com era with pe's of 200 and the easy military victories in Waco against Branch Davidians and Miami against the Cuban kid.

Ah, those were the secure and peaceful days. Obama, Dean, Clinton or Edwards in 08! Peace, and legalize pot.

DL, There is a dark side to a weak Dollar, as well. People investing in America would think twice when a Dollar is weak, especially since 43% of the national debt is from foreign investors. Over the past few years countries in Asia have been dumping Dollars for Euros, which they believe is a more stable currency. If the Dollar slips too much then there could be a run on trading Dollars in for another currency, which would lead to a large economic recession.

Also, commodities like petrol are calculated in Dollars. Since OPEC is not getting the same value for their oil, they raise the price. This affects the average consumer in the States. A couple of the OPEC members have already asked to change from Dollars to Euros.

While a weakened Dollar is not bad, it can be if it is weakened too much.

"trading Dollars in for another currency, which would lead to a large economic recession."

Don't mean to pick fly shit from the pepper, but the weak dollar actually lessens the probability of a recession. The last cycle of strong dollar was in 1998 when it began a climb to the high point in 2001, after the recession hit bottom in 2001 the dollar started sliding and our economy started expanding. See it now?

The recession is likely as the Fed moves to strengthen the dollar. From an investment standpoint; you’re right, since a weaker dollar is a plus in that it encourages expenditure switching, but the trend in weakening the dollar over time tends to diminish capital inflows; in that respect we prefer the strong dollar.

In other words, don't fear valuation of the dollar; it is where it is because that's where we want it.