The case for a weaker dollar

Filed under: Forecasts, Market matters, Economic data, Commodities, S and P 500, DJIA, Federal Reserve, Recession

Why would the government want a weak dollar? To get some perspective on the dilemma facing the Fed, let's go back to the Clinton years. During the 1990s, we had a booming economy. That booming economy fostered a strong dollar policy (i.e., strong economy equals a strong dollar).

Now the tables are turned and we are in the worst recession since the 1930s. We are mired in debt and our unemployment keeps rising. The housing market, while improving somewhat, is still in shambles. Banks are short of money to lend, keeping a lid on expansion, and on and on. So then we have the reverse of the 1990s.

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The case for a weaker dollar originally appeared on BloggingStocks on Sun, 04 Oct 2009 15:10:00 EST. Please see our terms for use of feeds.

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