Dollar may slide on White House staff indictments

[sabra]

http://today.reuters.com/business/newsarticle.aspx?type=reutersEdge&storyID=2005-10-26T191146Z_01_ROB668972_RTRIDST_0_PICKS-BUSH-LEAK-FOREX-DC.XML

Dollar may slide on White House staff indictments

NEW YORK (Reuters) - The U.S. dollar may weaken, along with stock and bond prices, analysts say, if the investigation of the leak of a CIA agent's name results in indictments against White House insiders.

The grand jury investigation is due to conclude by Friday, amid signs the prosecutor in the case is preparing to seek criminal charges over the leaking of CIA operative Valerie Plame's identity in 2003 after her diplomat husband Joseph Wilson accused the Bush administration of misusing intelligence prior to the war on Iraq.

Prosecutor Patrick Fitzgerald has interviewed senior White House staff in a bid to source the leak, and some investors fear the investigation may even taint Vice President Dick Cheney.

"Any indication that the investigation is widening beyond the simple pointing of fingers as to who leaked Plame's name to the press is an extremely dangerous development -- so stay on your toes," John Hardy, market strategist at Danish-based Saxo Bank, said in a research note.

[Horse with no Name]

1. Hmmm interesting

so it will be the partisan prosecutor's fault that the economy failed...just like it was Hurricane Katrina's fault the gas prices were so high...
I just love how all the months preceding this aren't taken into account...and events such as Bill Gates showing zero confidence in the dollar doesn't matter.

[sabra]

3. why does Fitz hate america?

[ayeshahaqqiqa]

2. Dollar slid when Watergate

started getting interesting as well. As I recall, one reason the Republicans told Nixon to resign was to protect the economy from collapsing.

[sabra]

5. well bush today said the economy is doing swell - so no worries :-)

[AndyTiedye]

12. The Economy Won't Get Better Until Bush and Cheney Are Out

[tridim]

4. Wait.. Isn't the dollar sliding anyway?

So it slides if they aren't indicted and it slides if they are. Gee, that makes sense.

[BooScout]

13. No...........it's strengthening...

....and has been for some time. Personally I hope it doesn't slide........I'm about to transfer a large chunk of $$$ to the UK when we move in a week or so. After that, it can do what it wants to.

[slor]

6. I hope that they do not think that this is reason to...

NOT follow through. The dollar is sliding down already, thanks to these fuckers, and that little quickie war, that is the central reason for the indictments, is not helping the economy either. We need to make things right in our house, convicting these criminals will help, and that will, in turn, restore credibility in our country, which may help us in the eyes of the world. I predict the dollar may actually go up if we fry these fuckers!

[quiet.american]

8. Although my thoughts on this aren't quite as vivid, I tend to agree. :)n/t

[truthisfreedom]

7. "skids greased under both cheney and dollar"

heh

[skids]

9. HEY!

I don't grease myself up for money or dudes! Thank you very much.

[Enraged_Ape]

10. I predict that $ will be the strongest currency in the world...

as soon as each and every one of these crooked clowns is behind bars where he/she belongs. For the very survival of our economy, indictments and convictions MUST happen. We must rehabilitate our reputation in the eyes of the world.

[RUMMYisFROSTED]

21. The world is waiting.

[RethugAssKicker]

11. OMG... Lets call off the investigation!!!!

[Journeyman]

14. We'll build a stronger dollar then on a better moral base. . .

sweep the vermin from the house and you'll stir up dust at the moment but the cat will sleep safer when evening falls.

[HereSince1628]

15. Well that makes as much sense as anything in the market

Stupid. Like, White House staff are so important to the value of the Dollar.

Somehow Rove and Libby have their fingers on T-bills and the Fed money policy.

The national debt doesn't bother your feeling about the dollar but the job security of a frigging political adviser does.

Stupid. These people deserve to be trading currency?

[cliss]

16. Let's keep an eye on

Wall Street. Wall Street tends to "know" what's really happening, despite all the bull-crap rhetoric and hoo-hah from Washington.

IF this is serious, then Wall Street will show it by going down. Indeed, Fitz mustbe keeping a very tight lid on this investigation, because the market is not moving down.

I believe these indictments will cause instability, so the market should move down once they become public knowledge.

[demgurl]

17. I can see how this is a real theory.

* and Cheney have sold so much of our country to China just to finance the Iraqi occupation. NOR said no other administration has ever sold so much because it is bad for another country to own that much interest in your country. Think about it, China could bring us down without every having to ever lift a single gun!

The bad part, NPR said, is that China can not stop giving us money even though it is a bad investment. They know if they stop giving us money that our economy could collapse and there goes their invested money. So China keeps shoveling in money and they say sooner or later it will have to stop and then there will be a major collapse.

We need strong government authority to save the country and our dollar now. Someone must step in and change the investments, pull out of Iraq and save our dollar. If * and Cheney go down then I could truly see our country collapsing. That is not to say they should not be gone after, they got us into this mess. We just really need to watch this house of cards carefully and make sure we have representatives who will not let it fall.

demgurl

[madmark]

18. Too bad, we will have to cut down on the crap we import from China

[mahatmakanejeeves]

19. I have felt for a while

that Fitzgerald would wait until the markets closed on Friday before having the grand jury hand up the indictments. I'm not so sure of that that I would take any bets, though.

The dollar has been going for about 82 or 83 Eurocents for a few weeks now.

A segment on the Nightly Business Report tonight noted that US Treasuries have been losing value. Overseas investors are reluctant to buy them due to Rovegate, or whatever it's being called. Interest rates for ten year bonds are something like 4.5%. I can look it up.

[oioioi]

22. Timing of announcements...

My guess it will be while market is closed.

I'm expecting a dramatic sell off in the stock market if there's a high level indictment (Cheney).

I think it's interesting that there's been virtually no discussion on the potential market shock that a high level incictment would precipitate. I've been reading DU Stock Market Watch threads expecting speculative posts on this, but nada.

[mahatmakanejeeves]

24. ... dramatic sell off in the stock market....

Oh, I don't know. I think some foreign money might be pulled out of stocks, but probably there would be more of a reaction in the bond markets, though. I'm no expert, except on losing money. If the Chinese throw in the towel, we're in deep doo-doo, as Poppy would say.

I figure the biggest financial decsion most Americans might make would be to buy a 99 cent, two pound bag of pop corn and a six-pack, so they could enjoy the festivities in style.

[grasswire]

20. ha

"But if "Cheney were to resign, the president would then actually have an opportunity to give a small boost to financial markets by nominating a successor viewed favorably by the population at large."

And who might that be? Bush will never nominate someone who can't be controlled.

[oioioi]

23. Greenspan?

I'm kidding.

That's the first name I could think of that would avoid a market meltdown if Cheney is indicted.

The second one is Guiliani.

Think about that for a minute.