The biggest reason is because interest rates are so low. High rates attract investment in dollars, which strengthens the price of a dollar. Low rates do the opposite. Of course, there are thousands of other variables, but this is the simplest to understand. I find a weak dollar to be very desirable in many contexts. It helps the competitiveness of our exports, for instance, which can over time help shrink the trade deficit. If I had to pick, I'd take low interest rates over a strong dollar any day of the week.
I'm not especially knowledgeable, but I'll tell you how I understand it. Currency is strengthened by investors buying it. If they have confidence in it or if they have a purpose for it, they'll buy it. If they lose confidence in it or need another form of currency, they'll sell it for some other form. The dollar has weakened because much of it has been sold for Pounds and Euros. Reasons for this: The large Federal debt makes investors wary. (Many aren't comforted by the "It's small in relation to the Federal Revenue" statement.) Since investment in a currency is effectively investment in a government, some investors have divested the dollar because of their opinions of what our government is doing. Finally, many international transactions that were done using the dollar have begun using the Euro. So some investors have been forced to convert dollars to Euros to do business. (The conspiracy theorist in me says that this is in order to force the US to convert to the Euro in a move to a unified currency, but I have no evidence for that.)
Never thought I'd here conservatives claim that a weak dollar is a good thing. We have truly entered bizarreo world.
We are living in a globalized world. This is an issue that the Democrats have really fallen behind on. The sooner they accept it and get off their isolationist theories (i.e. anti-outsourcing), the better. An argument against outsourcing is an argument against globalization. It simply doesn't hold.
this thread is so dumb, of course people are going to cheer the potus on the floor of the stock exchange. they cheer everyone who shows up there like for instance martha stewart.
Living in NYC in and working in the finance industry, the majority are Democrats and loathe Bush. Yes the Deficit is coming down but like another poster stated if we are losing 5 dollar to every 10 spent and then it goes to only losing 4 to every 10 spent it's not exactly time to celebrate. But hey I guess if you support a corrupt administration that will go down in history as one of the worst you celebrate what you can.
It doesn't concern you at all that this is completely destroying the manufacturing industry here in the US?
I don't buy that as the reason. I really believe, based on what I see in my industry that we are losing manufacturing jobs because we have a worker shortage. When construction on project takes 50% longer than scheduled because you can't find enough workers of any skill level, that hurts chances of having new manufacturing capability built. Companies really want to invest here. Toyota, Honda, and Nissan all have plants in the US. That was unheard of 20 years ago. Motiva (joint venture between Shell and Saudi Aramco) is expanding their Port Arthur Refinery to be the biggest in the country. Were the expansion a new refinery, it would have been the second-largest as constructed in the world. Really, few Americans are going into manufacturing jobs, and the workforce is retiring. So some of those jobs are going overseas. The only way to keep the jobs in America is to fix our ridiculous barriers to legal immigration.
Not one bit. If the American manufacturing industry can not compete in its own country (with all the associated benefits included in that), then why should consumers pay more for goods? Lower labor costs reduce the price of the goods, and should be pursued. Do you practice what you preach? Do you voluntarily purchase more expensive, and in some cases inferior, American-made products in the name of saving the domestic manufacturing industry? My guess is you do not. This means that you share my opinion.
That's bs, people work in the financial industry care about making money, and they have been making plenty last a few years. Which part of financial industry are you working in, anywhere close to a trading desk?
In heart of the Hedge Fund industry. Both my wife and I work for Hedge Funds and a Republican is a hard thing to find in either of our offices. Say at least 70% Democrat. My boss, a billionaire, huge Democrat.
My friends aren't traders, they're way above that level and work for various firms. I know since you might know a few traders in the Houston market that doesn't seem possible...but things are different here. Shockingly the financial business does in fact extend beyond the trading floor.
How can you even talk to those guys anyway? They're so hopped up on ephedra and caffeine they'd clap for crusty the clown.
