Dollar just had a heart attack:

[Subdivisions]

http://quotes.ino.com/chart/?s=NYBOT_DX&v=s

[unhappycamper]

1. Dumbass question:

How come money.cnn.com has nothing on this? And the DOW is at 10,246.91?

[DJ13]

8. The Dow likes a collapsing dollar, higher oil, and job layoffs

True American values on display.

[ProdigalJunkMail]

11. that's not why it climbs like that

people are moving money OUT of the Dollar and into stocks because of losses...

higher oil is actually just the reflection of the Dollar drop off (compare it to oil and see little change)

haven't seen anything today about layoffs...

sP

[Statistical]

13. Of course it is only that simple on DU.

Falling dollar helps many exporters.

GM sells a car in Europe for E20,000. A year ago that would have net GM $25,000 today it nets them $30,000.
Same car, same selling price $5000 more in dollars.

Even better GM can undercut their competitors. Sell the car for E18,000 and they net $27,000. Lower price but still more dollars compared to a year ago.

[newportdadde]

19. FYI GM just reported a 1.2B loss, maybe if the dollar gets low enough they can break even?

http://finance.yahoo.com/news/GM-reports-12B-loss-says-it-apf-899930954.html?x=0&sec=topStories&pos=4&asset=&ccode=

[Statistical]

22. It is entirely possible

GM European sales are rather strong. Buick is one of the strongest brands in China right now.

A declining dollar also means US imports are more expensive so the prices on Toyotas, Honda, VW, etc rise giving GM more "breathing room" on margins.

Of course weak dollar is no "auto win" button. There are negative consequences for weak dollar and likely the US will have to strengthen the US dollar eventually. The consumer also loses in weak dollar enviroment because prices rise and and some imports become to expensive so they aren't even imported.

less choice, less selection, higher prices are what consumer faces with weaker dollar.

[leveymg]

21. Most US companies import far more than they export - that's a cost not a profit

when the Dollar declines. Even more so for consumers. So, tell us again how this is a net gain for the US economy, except perhaps commodities exporters and currency speculators?

[Statistical]

23. Weaker dollar makes the national debt less in real terms.

Weaker dollars makes interest payments less of budget in real terms.
Weaker dollars makes exports cheaper which equals more foreign marketshare.
Weaker dollar makes imports in US more expensive which shifts purchases to US goods = more domestic marketshare.

Weak dollar has consequences but considering US consumer is dead and half buried likely the only way out of the recession is via exports which are substantially helped by weaker dollar.

Likely no issue with US govt keeping the dollar weak (despite a strong dollar policy) for couple years as US economy recovers.

[EOTE]

24. I think you mean gross, not net.

Unless GM has somehow managed to learn how to make cars for free.

[Statistical]

25. Yes poor choice of words. More like "collect" $27,000 in dollars.

[unhappycamper]

12. And the stock market thread in LBN has nothing on this? n/t

[A HERETIC I AM]

18. If you rely on that thread for information....

or even expect to see timely reporting, don't.

Witness last Fridays thread;
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4145236
29 total posts on a day the market was up over 70 points, with a huge post gap between 2:43 PM (post #27) and 8:30 in the evening (post #28), 4 hours after the market closed. I look at it occasionally to simply see if anyone has found an interesting article and to see the reactions to it, if any. They were remarkably quiet Friday afternoon.

It's unfortunate, and I would hope the regular posters mean well, but the SMW thread is really little more than a small group of DU'rs that enjoy posting financial articles and commenting on them, often with a complete misunderstanding or misinterpretation of the subject matter. Many on this board seem to hold that thread up as some sort of hallowed ground, populated by market mavens and economic experts.

Nothing could be further from the truth.

[Zenlitened]

27. You should post in SMW more often, then. Particularly...

... on days like Friday, when you saw a need for timely info. Step up and fill the need, no?

[A HERETIC I AM]

29. Nope, sorry. Been there, done that.

I've been perusing it on and off for better than 4 years now and tried posting for a time back in 2007. I have found that if one has the temerity to express an opinion contrary to the meme of that thread, namely that all of the financial industry is corrupt, the markets are "rigged" (a term used almost daily), and the only appropriate news is bad news, then those opinions are greeted with attack.

I'm not just speaking of my experience either. I have seen it happen many, many times to other DU'rs.

Let's just say it's not for me.

[derby378]

2. Thomas Cook Exchange, here I come...

If this happens more often, some of my hard-earned dollars are going to turn into euros.

[Bonobo]

3. This is how people get 'stuck' in a declining country...

Not worth enough money to leave anymore.

[rucky]

4. Is a half-a-penny dramatic?

I obviously don't read these things enough to know what's normal.

[Statistical]

26. half penny in a day is dramatic.

Everything is relative.

[itsrobert]

5. Still Higher than Jul 2008

Why just a one day chart posted?

[Subdivisions]

10. Yes, but Bucky is expected to challenge that resistance level soon.

As for the one-day chart, I posted it because it's the one I chose to post. You can look at all the options at the link. The one-day is showing the huge distortion to which I refer in my OP.

[safeinOhio]

6. GOLD just hit $1,142.60 nt

[Elwood P Dowd]

7. Silver up to almost $18.50. (nm)

[doc03]

20. People lost billions in the silver bubble back

in the early 80's. I have a few silver bullion coins I bought then and even with today's prices I have lost value.

[Subdivisions]

9. delete. wrong place. n/t

[doc03]

14. I predict you will witness a meltdown in

gold before long, just another bubble.

[RainDog]

16. there was a "peak gold" post on raw story yesterday

so no doubt a lot of "suckers" are buying gold today.

and, yeah, the dollar is still above levels in the bush years.

no doubt, with the deficit what it is, the govt wants a weak dollar. but we also need to go back to at least Reagan-era marginal tax rates to deal with current problems that were caused, in part, by the tax giveaways to the richest of the rich.

people need jobs. we need changes in laws to promote entrepreneurship - health care reform, legalization of cannabis, tax relief on employee withholding to spur small business because big banks' books are still not honest and the biggies are still in stare down contests.

[damntexdem]

15. Fatal? Will they have to do a bypass?

Why didn't I cents it?

[walldude]

17. So the nothing that I have is still worth nothing...

thanks for the info.

[Lydia Leftcoast]

28. Oh my, it's at 88 yen

It hasn't been that low since the early 1990s.