US dollar set to be major casualty of Hank Paulson’s bailout – Telegraph
23/09/2008 § Leave a comment
What was perhaps even more worrying for investors was an item in the small print of Hank Paulsons rescue plan. It said that, separate to the $700bn markets rescue package, the US Treasury would plunder the Exchange Stabilisation Fund the US currency reserves, established in the 1930s in order to pay for an insurance scheme for the money markets.
The Treasury has committed the nations FX reserves to supporting the money market industry, said Chris Turner, head of foreign exchange strategy at ING. That suggests to us that the dollar has fallen down the list of the administrations priorities a worrying development for foreign investors in the US.
GET OUT WHILE YOU STILL CAN!!