Uh-Oh How are the Dems Going To Spin This News

[Sitarro]

What will this mean for the "sky is falling" Democrat party? Will they be able to wish the economy back in the tank?



http://www.ft.com/cms/s/0/46500de6-6...0779fd18c.html

Dollar at crossroads amid brighter US outlook
By Peter Garnham in London
Published: August 10 2008 18:55 | Last updated: August 10 2008 18:55
This week will be crucial in determining whether the dollar has broken free from its six-year downward trend, as speculation mounts that the US is in the best position to emerge quickly from the economic downturn.

The dollar index, which measures its value against a basket of six major currencies, put in its best performance for over three-and-a-half years last week and boosted the dollar to its highest level for four months.

Against the euro, the dollar surged more than 5 cents, taking it more than 6 per cent higher than the low it hit last month.

Amid thin August volumes, traders believe there will be impetus to push the euro-dollar rate below the $1.50 barrier from its Friday figure of $1.5014 and to send sterling-dollar towards $1.90, consolidating last week’s 2.9 per cent fall to $1.9189.

Analysts say the turn towards the dollar reflects surprise that the fallout from the credit crisis has had such a marked effect on economies outside the US.

They say other central banks, unlike the Federal Reserve, have been slow to respond to a potential slowdown, refusing to cut interest rates as they focus on fighting inflation.

However, Jean-Claude Trichet, president of the European Central Bank, warned of a slowdown in the eurozone in the coming months, quashing expectations of higher interest rates.

The trend is expected to be confirmed by data from Germany this week, which is forecast to show that growth contracted in the second quarter.

Japanese officials have warned that the economy is heading for recession, while UK data continue to deteriorate and the Reserve Bank of Australia has said it is set to cut interest rates.

Ulrich Leuchtmann at Commerzbank said in a note he expected the dollar to rise “like a phoenix”. He said low US interest rates were not a burden on the dollar but an attraction, proof that the Federal Reserve was able to react quicker to turmoil than other central banks.

He said that in a very short period, “sentiment turned by 180 degrees – the market now believes that the US economy once again will be able to leave a crisis behind very quickly”.

[Sitarro]

More bad news?

http://www.ft.com/cms/s/0/c4edfb02-6...077b07658.html

Oil falls as fears for growth intensify
By Javier Blas in London, James Politi in Washington and Gerrit Wiesmann in Frankfurt
Published: August 4 2008 19:58 | Last updated: August 5 2008 08:56
Crude oil prices fell below $120 a barrel for the first time in three months on Monday, as new data underscored the damage high energy costs are inflicting on US consumers.

Real US consumer spending fell by 0.2 per cent in June, as rising inflation offset the impact of $100bn in rebates for US taxpayers.

EDITOR’S CHOICE
Kurds claim responsibility for oil line blast - Aug-07

In depth: Central banks - Jul-30

Interactive graphic: Tackling inflation - Jul-31

Tony Jackson: Oil’s fall and deeper malaise - Aug-03

Oil below $120 as commodities retreat - Aug-05

In depth: Oil - Apr-29

“A large chunk of the economic stimulus payments ended up in savings accounts in both May and June, as consumers pulled back on spending in the face of weak employment conditions, higher gasoline prices and declines in household net worth,” said Brian Bethune, US economist at Global Insight.

However, the recent falls in crude oil prices will comfort policymakers this week as central banks of the US, eurozone and UK meet to consider interest rate policy.

The US Federal Reserve, which meets on Tuesday, and the European Central Bank and Bank of England, which meet on Thursday, are all expected to hold rates steady as they weigh concerns about inflation and growth.

In early morning London trade, Nymex September West Texas Intermediate sank to a low of $119.91 before recovering slightly to $120.42 a barrel, down 99 cents from the previous session’s close. ICE September Brent fell $1.16 to $119.52 a barrel.

In New York, West Texas Intermediate oil futures on Monday plunged more than $5 to an intraday low of $119.50 a barrel, sending the Reuters-Jefferies CRB index, a global commodities benchmark, to its lowest since early May. In later trade, oil recovered to $121.41 a barrel.

Michael Wittner of Société Générale said prices fell amid concerns that a slowing global economy was damping demand for fuel.

Other factors pushing down oil prices included higher supplies from Opec, which mainly reflected Saudi Arabia’s decision to boost its oil production to the highest level in more than 25 years.

Some traders also expressed doubts about the strength of Chinese consumption, saying it had been artificially boosted by stockpiling ahead of the Olympics.

[Psychoblues]

Answering yourself doesn't make your argument more convincing, zero.

[avatar4321]

Answering yourself doesn't make your argument more convincing, zero.

Could you point out where he answered his own question?

[April15]

Why would some one spin fairly good financial news?

[Sitarro]

Why would some one spin fairly good financial news?

Your side can't afford to have our country doing well going into this election. You need 4 dollar a gallon gas and a stock market going down the tubes for Obama's bullshit "change" label to work. The Democrats have been talking down the economy since November of 2000.

[retiredman]

Your side can't afford to have our country doing well going into this election. You need 4 dollar a gallon gas and a stock market going down the tubes for Obama's bullshit "change" label to work. The Democrats have been talking down the economy since November of 2000.

that's just bullshit. The fact that the economy maybe has finally found the bottom and might be ready to recover is good news for all Americans.

[Dilloduck]

that's just bullshit. The fact that the economy maybe has finally found the bottom and might be ready to recover is good news for all Americans.

I just knew you would be the first one thanking the president !

[April15]

Your side can't afford to have our country doing well going into this election. You need 4 dollar a gallon gas and a stock market going down the tubes for Obama's bullshit "change" label to work. The Democrats have been talking down the economy since November of 2000.

I do believe the change is more than just financial markets and such. It will be a change in direction for the ethics of the nation from a lack of, to strict ethical behavior. From secret deals on energy to open and informed citizenry.

[darin]

to open and informed citizenry.

keep telling yourself that...really...if it helps you sleep. Today's liberals want one thing - they want John and Jane Citizen to become MORE Dependant upon their government. They tell you anything you want to hear in order to make you feel good about giving them the power they desire.

[April15]

keep telling yourself that...really...if it helps you sleep. Today's liberals want one thing - they want John and Jane Citizen to become MORE Dependant upon their government. They tell you anything you want to hear in order to make you feel good about giving them the power they desire.

Where do you get these ideas? Is the republican party brainwashing you into believing this kind of crap?

[AllieBaba]

Where do you get these ideas? Is the republican party brainwashing you into believing this kind of crap?

Anybody who has ever spoken with a lefty can figure it out for themselves. You guys give yourselves away when you open your mouths.

[April15]

Anybody who has ever spoken with a lefty can figure it out for themselves. You guys give yourselves away when you open your mouths.

So you too have been brainwashed?

[retiredman]

It is a goofy idea. I have NEVER once voiced any inkling of a philosophy where I wanted American citizens to be dependent upon the government. I think that we all want to be able to depend on our government to do what it is supposed to do with impartiality and effectiveness.

[AllieBaba]

So do you think the government needs to do more for the people?