Obama was on Vacation for Valentine’s day

Monday, February 16, 2009

I am at a loss to understand the new American administration. Last week, President Barack Obama spoke in front of the Nation and told a tale of how dire the financial situation was in the US and the world and how something needed to get done soon in order to fix it. He asked for his Congress, made up of two political parties, to stop bickering, band together and pass the nearly 1 Trillion dollar stimulus bill before it is too late. His exact words were “not everything in this bill is perfect, but what we do know, is that we need to act on it immediately”.

So his congress acted and passed the 1108 page legislation that commits 790 Billion US dollars to stimulate the economy. And what does President Obama do? He goes away on vacation for valentine’s day, leaving Washington and the stimulus bill to wait until Tuesday for his return. IF this was such an emergency wouldn’t he have signed the bill himself before going on a mini-trip with his wife? I wonder what all the unemployed people in the US (there are now over 13,000,000 of them) were saying when they saw their leader eating at a $450 per plate restaurant Saturday night – or when news came out on Sunday that he is replacing his 4 year old helicopter (Marine 1 as it is called) with a brand new one that costs more than a Boeing 747. His country is in dire need of stimulating and he is spending unnecessarily.

Well, the dollar was still holding up although Forex Brokers are a bit nervous about all the US spending. Investors stuck with dollar last week despite everything because there are really no options out there right now. England is having a difficult time, Ireland is on the verge of bankruptcy, so is Spain and Greece. Russia announced, to the chagrin of Forex traders holding Euro positions, that it is re-evaluating their payment of debt to the EU (its another way of saying they have no money right now). Even China has been admitting heavy job losses. It is difficult to see where someone investing or trading in the Forex can do better but the US. But I have a better solution.

Look this week for the down under dollars, New Zealand and Australia, to be strong – they are not as bad off as the rest of the world – yes they are hurting, but their liabilities are less exposed to the global economy. I see the dollar giving in this week and investors start to unload their positions. It is not getting pretty out there, and Forex Trading professionals know a rat when they see it – you cannot predict doomsday and then spend like there is no tomorrow on long term items like the US is doing. Let’s wait and see how the market reacts once last weeks happenings have been digested fully.


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