Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, NOVEMBER 8, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

$1T US Bailout May Crush Dollar's Rally

Plan's huge pricetag undermines confidence in the buck

Share

(Newser) – The US plan to spend up to $700 billion on suspect mortgage-related instruments and a possible additional $400 billion to insure money market mutual funds may stabilize financial markets—but it’s just as likely to send the dollar into a dive, eroding its 3-month rally, reports Bloomberg. “The dollar will get crushed,” predicted one expert.

Already, the dollar has begun to lose some of the luster it regained since June, including a 10% bump against the euro. Loss of faith in the dollar is driven by worries about increasing American debt, which would hit $11.3 trillion under the bailout plan. The slide began even before the plan went to Congress, with the dollar falling against 14 major world currencies. But some analysts believe the plan will ultimately help the greenback.

Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee hearing on Capitol Hill in Washington.
Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee hearing on Capitol Hill in Washington.   (AP Photo/Susan Walsh, file)
A currency exchange employee changes euros and US dollars in an exchange kiosk in downtown Milan, Italy.
A currency exchange employee changes euros and US dollars in an exchange kiosk in downtown Milan, Italy.   (AP Photo/Luca Bruno, File)
Treasury Secretary Henry Paulson appears on
Treasury Secretary Henry Paulson appears on "Meet the Press" yesterday.   (AP Photo/Meet The Press, Alex Wong)
Treasury Secretary Henry Paulson appears on CBS's
Treasury Secretary Henry Paulson appears on CBS's "Face the Nation" in Washington, yesterday.   (AP Photo/CBS Face the Nation, Karin Cooper)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.6.09
Galleon Scandal: Shocked, Shocked by Insider Trading
11.5.09
Rupert Murdoch Is Mad but Cute
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

403 Stories

  Geithner 
 to Bankers: 
 Crackdown 
 Is 'War' 



Treasury secretary tells Wall Street it must accept regulation

Oct 28, 09 7:30 AM CDT
(Newser) - Tim Geithner had tough words for Wall Street bankers yesterday, telling the financial industry's annual conference that they had no credibility to protest new regulation. The Treasury secretary said government had a responsibility to crack down on dangerous practices on the Street and design new laws allowing seizures of institutions... More »

MORE ABOUT:
Wall Street • US dollar • economic stimulus package • bank regulation • Treasury secretary • financial crisis • Timothy Geithner

 Ousted AIG CEO 
 Builds AIG 2— 
 With AIG Talent 

Greenberg's new insurer poaches AIG employees at taxpayers' expense

Oct 27, 09 7:47 AM CDT
(Newser) - Hank Greenberg built AIG into a $1 trillion behemoth that needed the biggest bailout in history—but quietly, the former CEO has begun a new insurance company, CV Starr, that is poaching some of AIG's leading talent. He just got an unintended assist from the Treasury: Tough new pay rules... More »

MORE ABOUT:
Iraq • executive compensation • insurance • AIG • Hank Greenberg • bailout • financial crisis

ANALYSIS

Count the US Dollar Down, But Not Out

Fears of a looming currency crash are overblown

Oct 23, 09 4:25 PM CDT
(Newser) - With the US economy in a prolonged slump and the Fed likely to keep interest rates low for the foreseeable future, many worry that a dollar crash will be the next shoe to drop. Currency pessimists can point to a 6-month decline in the dollar; this week the currency hit... More »

MORE ABOUT:
globalization • currency exchange • yuan • Lehman Brothers • euro • US dollar • weak dollar • financial crisis

 Euro Cracks $1.50, 
 Dollar Hits New Lows 


Investors shun low-yielding greenback for riskier currencies

Oct 22, 09 4:00 AM CDT
(Newser) - The dollar fell below the $1.50 threshold against the euro yesterday for the first time in 14 months, as investors with renewed appetites for risk continue to abandon the greenback. The dollar is at its lowest level against six other currencies in more than a year, and foreign exchange... More »

MORE ABOUT:
currency • exchange rate • euro • US dollar • weak dollar

 Bailed-Out Banks 
 Boost CEO Perks 

From private jets to bodyguards, they just keep taking

Oct 20, 09 6:32 AM CDT
(Newser) - The CEOs of bailed-out banks and financial companies saw their perks and benefits—ranging from private jet use and country club membership to free parking and bodyguards—rise even at the height of the crisis last year. On average, the CEOs of the 29 biggest companies that received federal money... More »

MORE ABOUT:
executive compensation • CEO • bank • bailout • executives • financial crisis • perks

403 Stories


'Safe haven' dollar may soon see flight
Wall Street Journal Subscription

Oil rebounds as dollar falls, outlook brightens for demand
Bloomberg


Business  •  World 
TwitterFollow @NewserBusiness on Twitter

 
currency exchange • euro • US dollar • weak dollar • bailout • financial crisis

from our news partners