Thursday, 22 January 2009

Think About It

Now, in a previous post I highlighted the fact that the Euro and Pound were plunging in relation to the dollar. These two currencies are two of the most heavily traded currencies, but their recent volatility is not confined to just those two. It applies to the entire currency markets. Currencies have been moving up and down like roller coaster rides. Now, imagine you are CEO of a major international company. You have to deal with tightening credits markets, a consumer who is retrenching, and wildly fluctuating currencies. It might give you nightmares as to what to do with your business in the next 12-24 months. So, what do you do? You cut back. You can't be certain of what will happen, so you decided to ride out the storm by saving what you have and spending less. Sounds like your everyday consumer.

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