by Bill McBride on 11/07/2007 01:28:00 AM
Wednesday, November 07, 2007
"... there will at some point have to be a ‘Wile E. Coyote moment’ – a point at which expectations are revised, and the dollar drops sharply."On topic, check out this funny post at Krugman's blog: Modeling the falling dollar
And from Bloomberg: Dollar Slumps to Record on China's Plans to Diversify Reserves
The dollar slumped to a record low against the euro after a Chinese official said the government will favor stronger currencies as it diversifies $1.43 trillion of foreign-exchange reserves.
... ``We will favor stronger currencies over weaker ones, and will readjust accordingly,'' Cheng Siwei, vice chairman of China's National People's Congress, told a conference in Beijing.
Posted by Bill McBride on 11/07/2007 01:28:00 AM