Maybe the news isn't all bad. Just today, I got a bulletin from Marc Chandler, global head of currency strategy for Brown Brothers Harriman, who says the dollar has recovered a bit and may recover some more after several months' time. At least, I think that's what he said. I'll paste a key quote after the jump.
While we're waiting for the great dollar bounce, I'm hearing much angst from people who've heard I'm working on Planet Money. Mom wants to know whether India and China "own us now." One friend wants me to know if the whole world economy could just collapse. Everyone wants to know when the job market will turn around.
Look, we all need to know what color our parachute is. Mine, thanks to this guy, is the color of a squirrel melt sandwich. Hunt your own. Never mind money, securities, arbitrage, reverse amortization, whatever. I'm hunting my own.
From Marc Chandler:
If the first leg up in the dollar was essentially a short-covering rally, which broadly understood, including the unwinding of large structural positions of long emerging markets and commodities, then after this correction phase, we anticipate another leg up for the dollar, this time fueled by a more positive stance toward the US economy and the trajectory of Fed policy. At the present, this still seems several months away.