Sunday, February 28, 2010

How long can the U.S. dollar defy gravity?


Some argue the dollar's recent rally against the euro and yen ... is less a vote of confidence than a realization that it's simply the best of a bad bunch.... a retired currency trader who worked at Chase in the late 1970s in London, called it a "reverse beauty pageant" in which investors pick the "least ugly" contestant.

... History suggests that a currency is supplanted the same way Ernest Hemingway said a man goes broke: gradually, then suddenly.

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