These are two great articles, both from Bloomberg yesterday, that give a very clear explanation about what is going on in the subprime and housing world, how that is affecting the finance world, and how the markets are and will react to currency changes at a macro-economic level.
The first, “Too early to tell who will survive”, explains how writedowns from banks will continue until housing prices bottom out, which could still be another year or two. In “Dollar Will Weather Whines, Jeers, and Jokes“, John M. Berry explains how the US Dollar will not get crushed without a massive worldwide recesssion and how the dollar is central to worldwide financial transactions.
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