The Casone Exchange
  • October 7, 2009 04:43 PM EDT by Cheryl Casone

    Best Guess: Dollar Threat

    the markets jumped Tuesday because the dollar fell.  What would you rather have? A weak dollar and China, Japan, and France making a move to replace it as the world's currency OR no good reason for the stock market to go higher and possibly correct itself as we get into earnings?

    Not an easy question, but am curious what all of you think.

    CC

    TOM: The threat of replacing the dollar as the world’s reserve currency will not happen.  The dollar is still used in half of the world transactions.  China holds trillions of dollars and would be doubly hurt.  Their investment in the dollar would be damaged and the U.S. consumer (who China relies on to buy their merchandise) would also be hurt, hence, severely cut back on buying imported products.

    DUNSTAN PRIAL: Securities industry reform in response to the recent crisis and the Bernie Madoff and Allen Stanford debacles will be narrowly targeted and incremental rather than sweeping and immediate. Simply getting more money to the SEC so they can hire more qualified people could go a long way toward preventing another Madoff or Stanford. Altering global banking regulations to prevent banks from getting “too big” isn’t likely to happen any time soon, despite the rhetoric.

    ROB MORGAN: I think the ISM Services report yesterday and the jobs report Friday are a microcosm of our economy - we have a growing economy but it is a jobless recovery.  I will talk about the reasons why.

    CHERYL CASONE: Another round of stimulus spending will not happen, but a tax credit for companies to hire will. Republicans are floating the idea of a $3000 tax credit for companies if they hire one employee.  Current stimulus money is used there to create jobs.

Mellow Brine

Sprinkle some healthy pessimism over the stream of robust optimism. You'll see a different picture. We don't swim. We are stuck in the middle of a murky pond. Nothing good will happen untill $ firms up at least 25% and oil goes down to $40.

October 9, 2009 at 10:44 am

Jack Frayer

1. The dollar as the worlds currency will last only as long as its value does not drop too far. Once this happens, a new currency will be born. 2. Getting more regulators on the street is a symbolic gesture. To prevent corruption, these money organizations can no longer be organized vertically. It is much harder when two companies need to collaborate to make a ponzi scheme or perform some other highly questionable activity. This simple organization restriction could do it all. 3. The jobless recovery is a symptom of our US problem. Wealth is not sufficiently being generated in the US by its resident companies. There are not enough viable businesses in the US today to carry us forward. Our children are in trouble now. 4. The tax credit sounds good; but, $3000 incentive is for low paying jobs. Most companies spend far more than this for skilled workers. Our problem now is that we have too many skilled workers going after too few job openings. And, most of the new skilled job openings are overseas. There is little wealth creation in this proposal; but, it is better than building roads and bridges.

October 8, 2009 at 4:55 pm

Tim Miltz

PROP Comments section you only print what you want I print what I write - AND what you exclude on the REAL Fox Business site FIND IT We're LAUGHING at you - you're GREAT entertainment. go have a coke now

October 8, 2009 at 1:37 pm

Tim Miltz

Please- go have a coke.

October 8, 2009 at 1:35 pm

Tim Miltz

I did observe this story covered on Fox Business News. However, my first reaction was - stock markets are not bound by the dollar. Global investors - Global economy. Doesn't matter what happens in Vegas, er, I mean the US, what happens in the US doesn't STAY in the US - the stock markets are picked over from GLOBAL venues, resources, investors, participants. You just have to start subscribing to the Alan Greenspan Times - which of course is so advanced it doesn't exist, however I am 100% on board with Greenspan in recognizing we now live in a global economy. Nationalism just hasn't 'adjusted' yet. To think that because the USD fails ? The Stock markets will reflect it ? Not so. Take NASDAQ - you can buy direct with Euro's now. If anything, if the dollar falls ? the better the conversion is - Weak dollar means UK shoppers can come HERE for Christmas shopping - AND STILL get things cheaper WITH 1rst class air fare. A weak dollar is GOOD for everyone OUTSIDE the US. I'd say if the stock markets go UP on a weak dollar ? Probably means more outside the US investors exist than inside. Last I checked, US has 10+ % unemployment - and plenty of problems otherwise. Go World !

October 8, 2009 at 11:58 am

wmw

Can we all say RON PAUL?

October 8, 2009 at 7:08 am

Diamond

The USD is going down. The stock market going up will be the downfall for those just getting back. They will loose money and never again go back. Insted, they will keep their mony in USDollars. This will be the ruin of their remaining welth.

October 8, 2009 at 5:15 am

about this blog

  • Cheryl Casone joined FOX Business Network (FBN) in September 2007 as an anchor. Prior to FBN, Casone served as a correspondent for FOX News Channel’s (FNC) business unit and was a regular guest on FNC’s Your World with Neil Cavuto. Casone brings years of experience covering finance, business, and consumer news to FBN.

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