Comments on: Trashing cash http://www.creditwritedowns.com/2008/10/trashing-cash.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Stevie b. http://www.creditwritedowns.com/2008/10/trashing-cash.html#comment-508 Stevie b. Thu, 23 Oct 2008 16:54:00 +0000 http://www.creditwritedowns.com/2008/10/trashing-cash.html#comment-508 "the fact that the Fed is now bent on trashing cash -- may catalyze a reversal in the stock market."<br/><br/>Maybe, but at what cost? Can they put cash back together again? All the king's horses and men couldn't do it for Humpty, but perhaps this lot is made of sterner stuff? Or perhaps not.... “the fact that the Fed is now bent on trashing cash — may catalyze a reversal in the stock market.”

Maybe, but at what cost? Can they put cash back together again? All the king’s horses and men couldn’t do it for Humpty, but perhaps this lot is made of sterner stuff? Or perhaps not….

]]> By: Wag the Dog http://www.creditwritedowns.com/2008/10/trashing-cash.html#comment-504 Wag the Dog Thu, 23 Oct 2008 16:51:00 +0000 http://www.creditwritedowns.com/2008/10/trashing-cash.html#comment-504 The sudden strength in the dollar is causing <a HREF="http://in.reuters.com/article/businessNews/idINIndia-36112720081023" REL="nofollow">seismic upheavals in sovereign wealth funds</a>. To cover domestic dollar denominated liabilities and prevent trophy assets falling into foreign hands, the effect will be diversification away from the dollar. Previously, sovereign wealth funds had been <a HREF="http://www.iht.com/articles/2008/07/20/business/deal21.php" REL="nofollow">buying American debt and propping up US financial institutions</a>. What effect will this have in the long term for the dollar? The sudden strength in the dollar is causing seismic upheavals in sovereign wealth funds. To cover domestic dollar denominated liabilities and prevent trophy assets falling into foreign hands, the effect will be diversification away from the dollar. Previously, sovereign wealth funds had been buying American debt and propping up US financial institutions. What effect will this have in the long term for the dollar?

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