The USD is crashing:

[Subdivisions]

http://quotes.ino.com/chart/?s=NYBOT_DX&v=d12

This is only the beginning. We're in a world of shit.

[Oregone]

1. Its been worse. Its been better.

Don't sweat it. Its still in much better shape than 3-4 months ago.

[Pab Sungenis]

2. It's a rapid drop

but still above the low. We'll see where it goes.

[tuckessee]

3. Printing more is bound to help.

:sarcasm:

[Warpy]

4. Well, it crashed last year

Right now, it's just losing some of the gains it's made over the last couple of months.

But yes, we are in a world of shit. The currency markets seem to be anticipating the drop of the other shoe next year when the jumbo and creative mortgages (often the same) start to reset. Remember, these were the really bad ones written in the waning days of the bubble when prices were highest and teaser rates the lowest. Nearly all of them will now reset and go into default.

The first shoe was an ugly surprise to most people. This one isn't and one has to hope that institutional investors have prepared for its fall.

[enlightenment]

5. I check the dollar against the pound every day

to get a sense of how much our charity cookbooks are costing US buyers (the books are printed by a UK publisher) - it's down a couple of cents today from yesterday, but that level of fluctuation has been consistent for several months . . . and it's actually a heck of a lot stronger than it was this time last year!

*ps - if you're interested in the cookbooks, check my sig . . .*