Tuesday, March 2, 2010
SELLING ENGLAND BY THE POUND
Until now, that is. Suddenly, investors are asking if Britain may soon face its own sovereign debt crisis if the government fails to slash its growing budget deficits quickly enough to escape the contagious fears of financial markets. Good luck.
The pound fell to $1.4954 on Tuesday, its lowest level against the dollar in nearly 10 months. The yield on 10-year government bonds, known as gilts, slid as investors fretted that Parliament would be too fragmented after a crucial election in May to whip Britain’s messy finances back into shape.
WB7--So what does this make the US dollar? The currency dumpster that everyone runs to when there's no where else to hide. Is it starting to feel like Spring 2008 yet?