Thursday, November 11, 2010
Dollar better than the Euro?
Although there is quite a bit of pesimism with respect to the dollar, it seems the euro may have it worse. As the US still has difficulty in finding a bottom in house prices and loans are still defaulting, it could be said that the euro could be worse. Much of what has happened in the US is also happening in Europe. The difference is the actions that have been taken by the two groups over the same period of time. Europe generally tries to keep its hands out and wait out problem times, as where the US economy is run with more aggressive moves. The US has dumped trillions to help induce growth, and although the world is not happy about it, one may summize that it could help the US move out of this problem. It is a guess as to how much this helps or hurts the US economy, but no matter how you look at it there has been better moves in the US stock market as opposed to Europe as a whole. It these moves speed the unraveling of foreclosures it would be safe to say it will take longer in Europe. Look for the dollar to increase against the Euro in the short term, although it should lag many of the emerging countries.
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