The Double Dip

Foreign speculators (we formerly called them investors) in U.S. securities have recently found that dollar fluctuations provide an arbing cushion to mitigate their losses. This arb helps to keep players in the game.

If the U.S. dollar fails to recover to counter the next market setback, the double downside decline experienced by foreigners could cause all hell to break loose.

In my opinion, the U.S. dollar is living on borrowed time. Government bailouts are the easy way out, but they are also a one way street. Bailouts simply lead to bigger bailouts.
Eventually the dollar pays the price.