"The credit crisis sparked by mortgage problems reared its head anew, as stocks tumbled on fears about shaky financial institutions. This time, the dollar's fall to record lows and oil's flirtation with $100 a barrel added to the worrisome brew. ... Something else is beginning to nag at investors. The dollar and oil are pushing to opposite extremes. ... The combination of economic worries and market movements is reminiscent of the chaotic 1970s, when the U.S. was best by inflation. ... Inflation is under control and most investors trust central banks to keep it that way. ... 'This is a critical juncture,' said Jim O'Neill [JO], head of global economic research at Goldman Sachs [GS]. 'The dollar is behaving in the past couple of days as though the market is testing its reserve-currency status'," WSJ, 8 November.
With gold at $835, most investors trust central banks to keep inflation under control? I wonder if JO talks to Jeffrey Currie at GS? See my 24 October post.
With gold at $835, most investors trust central banks to keep inflation under control? I wonder if JO talks to Jeffrey Currie at GS? See my 24 October post.
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