Intraday Market Thoughts

Archived IMT (2008.09.22)

by Ashraf Laidi
Sep 22, 2008 19:00

Dollar slump accelerates as US stocks deepen their declines, making this a USD-centric play, propping gold to $907 and oil to $116. With the high yielders rallying against the dollar during sharp Wall Street sell-off, the only explanation is that it is triggered by eroding USD sentiment. Big government bailout means a deterioration in the US structural deficiencies (budget deficit) rather than cyclical deficiencies (weakening economy). With budget deficit already slated to surpass $480 billion in 2009, the latest bailout is expected to push the imbalance closer to $520 billion, excluding the Iraq War and added spending resulting from the new president.


Latest IMTs