1US$ is now 1.01EURO

Jun 27th, 2002, 08:12 AM
  #21  
Rex
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The exchange rate of the dollar vs. the pound has gone "down" (dollar worth less, pound worth more) about 7% in the past 3 months, whereas the dollar vs. the euro has gone down almost 15%. So both the strengthening of the euro (whether you measure it against GBP or USD) and the ewakening of the dollar are at play.

You can see any of these trends at the following web addresses:

http://uk.finance.yahoo.com/q?s=USDGBP=X&d=c&t=3m

http://finance.yahoo.com/q?s=USDEUR=X&d=c&t=3m

http://uk.finance.yahoo.com/q?s=GBPEUR=X&d=c&t=3m

Trying to see the glass as half full... it's a good time to invite Europeans to come see the USA!

Best wishes,

Rex
 
Jun 27th, 2002, 08:23 AM
  #22  
Peter
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I'm under the impression that the value of Euro was initially measured as 1 to 1 with the dollar. For the past 3 years it was a trading currency and not an actual one. Now that it's real money, market forces are in play. Barring the downward trend of the USD in general, and merchant, the EUR/USD relationship is now as it was designed.
 
Jun 27th, 2002, 08:31 AM
  #23  
Sjoerd
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Peter, your impression is false. The euro wasn't valued at anything vs. the USD. At the start if the euro (1/1/99) the euro was worth approx. 1.18 USD. The markets decided that value, not some central bank or some government.
 
Jun 27th, 2002, 08:33 AM
  #24  
Sjoerd
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And it was a very real currency during the last 3 years. Big business has worked in euros since 1/1/99.
 
Jun 27th, 2002, 08:38 AM
  #25  
Peter
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Sjoerd, My mistake. I just looked up the January 1, 1999 rate it was 1.16692. Interestingly enough, at the end of 1999, the rate was exactly 1 to 1. Check this site for a very comprehensive currency calculator with historical data: http://www.oanda.com/converter/classic
 
Jun 27th, 2002, 08:42 AM
  #26  
Peter
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I agree on big business. My company has been working with Euro all along. However, electronic payments notwithstanding, nothing make a currency as real, as the physical exchange of cash.
 
Jun 27th, 2002, 11:59 AM
  #27  
Erin
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hmmm...Sounds like a good opportunity to travel to South America or Africa.
 
Jun 27th, 2002, 01:51 PM
  #28  
politic
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If you think global economics is unrelated to global politics, think again!
 
Jun 27th, 2002, 01:54 PM
  #29  
xxx
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The American Empire is falling.
 
Jun 27th, 2002, 01:58 PM
  #30  
Peter
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What do we think is the lag time between a recession in the US and a recession in the rest of the world?
 
Jun 27th, 2002, 02:07 PM
  #31  
W
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For all you prophets of doom, read it an weep:

Thu Jun 27, 3:44 PM ET

WASHINGTON (Reuters) - The U.S. economy grew faster than expected at the beginning of this year and the labor market is improving, welcome news for a uneven recovery and for financial markets shaken by a string of corporate accounting scandals.

Boosted in part by the first increase in business spending for equipment and computer software since the third quarter of 2000, U.S. gross domestic product (GDP ( news - web sites)) -- the broadest measure of goods and services produced within the country's borders -- grew at a revised 6.1 percent seasonally adjusted annual rate during the first three months of this year.

That was the fastest pace in more than two years and unexpectedly higher than an earlier estimate of 5.6 percent, the Commerce Department said in its final reading for the quarter.

 
Jun 27th, 2002, 02:10 PM
  #32  
politic
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http://www.nytimes.com/2002/06/27/business/27GLOB.html

Excerpts below, but the article is worth reading in its totality:

The loss of foreign confidence in the United States is important in itself, because of the huge deficit the United States runs in its trade with the world. To cover that deficit, America must attract a net inflow of $1.3 billion in foreign money every day. Even a modest decline in the flow can weaken the dollar and drive up the prices of imported goods.

But the fall from grace is broader than just a turn in the monetary tide. The more enduring impact of the accounting and boardroom scandals may be the tarnish they spread on the "American model," a philosophy that emphasizes bare-knuckle competition, aggressive deal making, a high level of public disclosure and fantastic rewards for executives who deliver the goods.

Europe has had its own run of financial scandals, generally involving young technology and media companies, that match the worst cases to surface during the dot-com bubble. But Guido Rossi, a former chairman of Telecom Italia and now one of Italy's most outspoken advocates for modernizing the way companies are run in Europe, said: "What is lacking in the U.S. is a culture of shame. No C.E.O. in the U.S. is considered a thief if he does something wrong. It is a kind of moral cancer."
 
Jun 27th, 2002, 02:16 PM
  #33  
Enron WorlCom
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The speed with which Bush addressed the latest revelation — bringing it up himself during a picture-taking session on Wednesday with British Prime Minister Tony Blair ( news - web sites) — underscored the seriousness with which the administration is taking the growing controversy.

It also offers a contrast to the conduct of Bush and his top aides last winter when questionable bookkeeping practices at Enron Corp. that put the Houston-base energy trader on the road to bankruptcy first were disclosed.

Then, the White House sought to make light of a long friendship between Bush and fellow Texan Kenneth Lay, the former Enron chairman.

Administration officials declined to answer broad questions about administration contacts with Enron and sought to discourage congressional inquiries, with White House spokesman Ari Fleischer referring to them as partisan "fishing expeditions."

But with a crisis of confidence in corporate America growing with each new revelation, and Democrats beginning to seize on corporate abuses as a campaign issue, Bush on Wednesday took the initiative. "We will fully investigate and hold people accountable for misleading not only shareholders, but employees as well," he declared, while adding that he believed the remained strong.
 
Jun 27th, 2002, 02:22 PM
  #34  
The President Gets a "C"
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I beg to differ with W. It seems the first quarter figures and second quarter figures will be markedly different. But W's never been very good about keeping track of relevant information, i.e. those pesky CIA reports.

http://www.washingtonpost.com/wp-dyn/articles/A44973-2002Jun25.html

Many of those investors are foreigners, who had shifted several trillion dollars into U.S. financial markets in recent years on the assumption that the currency-adjusted rates of return here were significantly better than anywhere else. Now, as they sell stocks and exchange the dollars for other currencies, they have driven down the value of the once highflying greenback by 8 percent against the yen and 12 percent against the euro.

"Foreign investors are coming to the realization that U.S. markets are riskier than they thought," said Richard Bernstein, chief equity strategist at Merrill Lynch & Co.

The effects of this setback on financial markets are already being felt in the real economy.
 
Jun 27th, 2002, 02:22 PM
  #35  
observation
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-- "No C.E.O. in the U.S. is considered a thief if he does something wrong. It is a kind of moral cancer." --

Good analysis. We've been run into the ground by the shameless behavior of these greedy bastards. This is high time to purge the CEO trash. As an average employee of a US corporate giant, I watch with awe as the company is being mismanaged and employees shamelessly robbed – all in the name of senior managers’ bonuses. If our CEO were to forgo this year’s annual bonus, over 300 near-retirement age employees could last long enough to collect their pensions.
 
Jun 27th, 2002, 02:34 PM
  #36  
Capo
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"A lawyer with a briefcase can steal more than a thousand men with guns." -- Mario Puzo.

You could also subsitute corporate executive for lawyer in the above quote.
 
Jun 27th, 2002, 03:00 PM
  #37  
xxx
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Whats with lawyer bashing. When you get a service, you pay a fee. Everyone needs lawyers.
 
Jun 27th, 2002, 05:37 PM
  #38  
IFeelYourPain
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It's the Clinton administration's lack of morality that has come home to roost. Don't worry, Bush & Cheney will clean it all up during their EIGHT years. REPUBLICANS RULE!!!!!
 
Jun 27th, 2002, 05:47 PM
  #39  
mr reality
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Author: peace and prosperity ([email protected])
Date: 06/27/2002, 12:06 am
Message: Remember when the economy was booming? When terrorists were not lurking behind every crevice? When buildings didn't collapse, and the U.S. was respected in the world. A time when citizens were free to speak out? Feeling nostalgic? Sorry. It will just remain a distant memory, for you are no longer in that more sensical era, fasten your seatbelts, you have now entered the Bush Zone....

You're a jackass.
 
Jun 27th, 2002, 05:51 PM
  #40  
Jack
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Message: It's the Clinton administration's lack of morality that has come home to roost. Don't worry, Bush & Cheney will clean it all up during their EIGHT years. REPUBLICANS RULE!!!!!

What was Clinton doing in the sink again? Was he really getting rid of Chelsea's possible little sibling?
 

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