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Old 10-23-2009, 15:48   #1
nmap
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Join Date: Jun 2007
Location: San Antonio, Texas
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Raw speculation: currency dislocation?

The following link is to a site that sometimes produces interesting information. The material is, as the title suggests, speculative - and, as the author points out, may be wrong.

In essence, it looks at some data and draws some conclusions. YMMV.

First is the massive increase in credit card rates by Citibank (and others) to 29.9%.

Second is the rumor (unsourced) that banks are accepting very low prices for houses purchased for cash (no financing).

The conclusion is that the banking system is in very serious trouble, and that this might lead to another credit shut-down, and hence to the prime rate going a great deal higher. This, in turn, would make the dollar go up and would also make commodities go down. It might also mean that access to credit would be quite limited.

Anyway, I place it under the category of raw information - interesting to consider, but not a certainty. I offer it for your consideration or amusement.

LINK
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