Egypt Crisis Puts Spotlight on Weakness in US: El-Erian

Egypt Crisis Puts Spotlight on Weakness in US: El-Erian

www.cnbc.com

"Had you asked me 19 days ago what happens to the dollar if we have the sort of developments we had, I would have told you the dollar would be stronger," said El-Erian, co-CEO at the company that runs the largest bond fund in the world. "With the exception of three days, the dollar has weakened during that period. You are seeing a reassessment of the standing of the US dollar and the US Treasury market has the flight to safety, the flight to quality."
...
"If we get widespread violence in the streets you will get a massive risk-off trade," El-Erian said. "You will see equities sold of

(visit the link for the full news article)


Related News Links:
tech.fortune.cnn.com

Related AboveTopSecret.com Discussion Threads:
IMF calls for dollar alternative

Wait! What? We were expecting a rise in the Dollar after the fall of Egypt? Who's trip were you on?

When a report by Gerald Celente was released last November stating that the fall of the US dollar could be as soon as February of 2011, I understood that to indicate a downturn in business. Now I'm not so sure that we shouldn't realize the reality of how literal that advice was!

As Banks start the new year in repossessions, losses in the first months of the year are expected. However, the trend for American business shows record losses in January - worse than in most companies' history. Just talk to your friends who have businesses to confirm this.

What's going on? Check out the loss of $10 billion in Apple stock yesterday that no one has explained yet. If I knew the Dollar was about to crash, I'd be out of the NYSE and into other assets too. I half expect to see more moves like this from other major holders.

The US is on the brink of something big here. For the first time we are seeing multiple sources of fundamental news that are echoing the same foreboding predicted in conspiracy films and in last year's technical analysis of the Dollar. I'm getting the impression that the laugh is over. The Dollar will not sustain another 2008 fiscal year.

www.cnbc.com
(visit the link for the full news article)

reply to post by CodeRed3D


so what you are saying is people are pulling all their money out of the bank before it crashes.

reply to post by CodeRed3D


Yes and I'm always amazed when some say that increases at the stock exchange show an improved economy buy fail to point out the US$ is dropping at a faster rate.

Originally posted by pcrobotwolf

so what you are saying is people are pulling all their money out of the bank before it crashes.

I would definitely keep an eye on the NYSE. A rapid exit of monies this week will be telling. Don't be fooled by people stating that the loss was due to the announcement of the merger with Deutsche Borse either! At least I hope that this event won't overshadow what's already starting to happen.

Deutsche Borse Merger

maybe Apples losses on the market was because of a news article that there iphones and ipads security can be breached in 6 minutes. whether your passwords are encrypted or not on the phone.

iPhone, iPad hacked in minutes

Originally posted by CitizenNum287119327
maybe Apples losses on the market was because of a news article that there iphones and ipads security can be breached in 6 minutes. whether your passwords are encrypted or not on the phone.

iPhone, iPad hacked in minutes

LOL, you could be right. But being in the software business myself, I've been trained to load the update rather than dump my stock. I think Microsoft still has the lead in security breaches.

reply to post by CodeRed3D


Frankly I am disgusted that this crap even makes the news. The ONLY important ,remotely news worthy element of the Egyptian revolution is that democracy has the potential to find another home in the world. The fact that previously established democracies are soiling thier ever so expensive underwear over the financial impact of this is testament to something I have long believed about such well established democracies. That would be that they rely on democracy being exclusively available to themselves, and nations they consider to be stable already. When a nation which has even the remotest chance of going over the edge, and becoming a problem state, or harder to manipulate with cash, these old campaigners , these monoliths of people power, go ape, loose worth, and cannot sustain even thier DIGNITY during such upheavals.
It should be the aim and the desire of every democratic nation, and every person in a democratic society, to spread this political methodology as far, and as wide as it can go, to show the benifits of universal freedom of expression, equal rights and access to the political landscape, and the freedom and power to change that which makes life burdensome and keeps all but a ruling class under the thumb of poverty and disharmony.
Instead, we see that some pathetic and utterly spineless individuals are more interested in the ecconomic backwash that is being caused by what ought to be recognised as a good thing.
Its not just the US that will be affected by this change. All the financial institutions in the world will feel this change at some point, but you dont see the leaders of the free world all prattling thier fears and sorrows about the situation.
Heres my truth. If the spread of democracy caused the utter destruction of the ecconomy in my nation, I would welcome the chaos, and rely on the strength of democracy to see my nation through such worries. I would rather be uncomfortable in day to day life, and remain dignified and quiet in the face of the jubilation felt by newly democratic nations, than immediately complain bitterly that joyous as these changes are, they are killing my nation slowly. The very fact , that ANYONE sees fit to mention such dirty , and utterly UNIMPORTANT matters as finance, in the face of such a positive change in the world, confounds my ability to render a response which is adequate to my complete contempt for the attitude which makes these comments spring forth.
In short, if one is really so obsessed with ones bank accounts, one can all shut up for about a year while people who actualy have souls, and hearts, and want the best for EVERYONE on Earth, get on with celebrating one of the most important moments in the history of democracy itself.