Friday, September 21, 2007

Imminent Dollar Plunge?

Paul Krugman keeps watching and waiting.

Lots of buzz suddenly about the possibility of a sharp fall in the dollar.

[...]

[A]ccording to the story, one of these days there will be a Wile E. Coyote moment for the dollar: the moment when the cartoon character, who has run off a cliff, looks down and realizes that he’s standing on thin air – and plunges. In this case, investors suddenly realize that Stein’s Law applies — “If something cannot go on forever, it will stop” – and they realize they need to get out of dollars, causing the currency to plunge. Maybe the dollar’s Wile E. Coyote moment has arrived – although, again, I’ve been wrong about this so far.

I have found that to be the case with lots of things, and maybe they're all related to the economy, but it does seem like we keep going on long after it seems we should have hit the wall.


....but hey, do what you want....you will anyway.


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