Originally Posted by
Gaucho100K
In closing... the black market FX rate for the USD here in Argentina is now over AR$3.60 to the dollar, so things are not exactly looking great down here either. Even if the Argentine financial system is not at all overleveraged, the worldwide economic recession that is here and will stay around for a while is going to hit hard in 2009. Im afraid there is little to party or joke about.
The rise of the USD is apparently due to commodity speculators unwinding their positions and pretty much having to "buy" USD when selling their holdings, thus driving up the USD. Argentina of course doesn't benefit as an exported of grain, soya beans and beef.
When sanity returns to the markets, they'll once again focus on the fundementals of why the USD has sunk in the past 5 years, and this time with about $5-6 extra
trillion in debt.
includes assumption of FNMA and Freddie Mac debts[/SIZE]
See:
http://money.cnn.com/2008/10/10/news...ion=2008101014