Fasten Your Seatbelts. Then Pray.

Dollar Falls to Record Against Euro as Credit Concern Spreads

July 24 (Bloomberg) — The dollar declined to a record against the euro and weakened to a 26-year low versus the pound on speculation the rout in subprime mortgages is spreading, slowing U.S. growth.

The currency’s drop accelerated after Countrywide Financial Corp., the biggest U.S. mortgage lender, reported a third straight quarterly earnings decline as more consumers fell behind on home equity loan payments. The yen gained versus all but one of the 16 most actively traded currencies as U.S. stocks fell and traders pared carry trades in which they borrow in the yen to invest in higher-yielding assets.

“The Countrywide report simply added to the dollar selling,” said Tom Fitzpatrick, global head of currency strategy in New York at Citigroup Global Markets Inc. “The concern is that we are starting to see the subprime issues spread into the credit market, which will knock on growth.”

What, you think there will be a big government bailout like there was for the S&Ls? With what money?

Don’t you realize we’re being financed by China? (In the 1980s and into part of the 1990s, it was Japan.)

How long before the music stops and we find we don’t have any chair to sit on?

Previously in this blog:
America: The Endgame
The Answer Is Yes
When An Economy Crashes, Baby, There Are No Airbags!
And Then Google’s Stock Finally Thank You Jesus Crashes And Takes The Entire Global Economy Down The Toilet, Thank You Science!
The Road to Great Depression 2.0