After several years of robust economic growth, the Brazilian economy has all- but-erased its reputation as an economic basket-case. Gone are the memories of chronic corruption and crippling devaluations. The once-pathetic Brazilian currency is now a paragon of strength and respectability – so much so that Brazilians prefer their “reis” to U.S. dollars.
Meanwhile, in the [...]
Archive for Eric Fry
Credit Default Swap Market Says Avoid Merrill Lynch & Pulte and Buy Brazil
Commercial Paper: Structured investment vehicles struggling due to mortgage backed securities
A-B-C-P may be the four most influential letters in today’s financial environment. The fate of those four letters over the next few weeks will determine the fate of the US stock market and the US dollar. The wellbeing of the entire US economy might also hang in the balance. At least that’s our guess…and that’s [...]
October 29th, 2007 | Eric Fry | 1 comment | Continued
U.S. Fed Bailout Corroding Capitalism and the U.S. Dollar
Welcome to Fed’s “Bail-Out Nation.”
America, the Land of the Free, is quickly becoming the “Land of the Freebie,” especially for members of the millionaire corporate elite who make multi-billion dollar mistakes… with someone else’s money. This unfortunate state of affairs is jeopardizing the dollar’s value, as well as its hard-won reserve-currency status.
Once upon a time, [...]
Commercial Paper Market Could Lose US$500B by Thanksgiving
Bad economic booms tend to produce bad results…like runaway indebtedness and a plummeting currency. Do you happen to know of any large Western economy with these characteristics?
Sometimes, the difference between a good boom and a bad boom is very subtle and subjective. A “bad boom,” for example, might simply be a good boom that you [...]
Yen Carry Trade Meltdown Could Cause Yen to Soar
Is the stock market scaring you? Buy yen.
If the connection between falling stocks markets and a rising yen confuses you, don’t be dismayed. You have a lot of company. But the connection is not as confusing or sophisticated as it might seem. The “yen carry trade,” as it is known, only seems complicated. But it’s [...]
