I’m attempting to grapple everything going on apart from my disgust… and come up with a couple scenarios. Any help will be appreciated. This is from a post I created and decided to make it into a permanent page and add to it as people comment and the future unfolds.
Overall economic trend:
- - Economy is sliding deeper into a recession
- - Housing prices continue to fall
- - The dollar’s short-term value is undecided, and long term looking weak
- - Unemployment rising
- - Prices falling
- - Interest rates falling
If a bailout is passed we might be able to presume that:
- - The dollar will lose value potentially very much if large reserves are sold off
- - Interest rates will have to rise as that is the only way foreigners will want to hold dollars
- - Imports will become very expensive
- - Prices will skyrocket
- - Recession will deepen – Depression?
- - Stock market will rally — for how long?
If the bailout isn’t passed:
- - Dollar might stabilize a bit
- - Uncertainty will continue
- - Markets will gyrate while overall trending down
- - Financial markets will tighten
- - Stock markets will plummet
Finally: A potential indicator of a dollar collapse
If interest rates rise and the dollar falls people are selling off their dollars and treasuries, which means nothing but bad for the dollar.
How am I doing so far?