Euro crash: We may never get blogged by the Daily Reckoning again!

Posted August 10, 2008

The euro comes crashing down from it record highs against the dollar. The Daily Reckoning may never blog us again!

by J. Christoph Amberger

Baltimore — (TFN): We may never again get blogged by our friends of ContrarianProfits.com or DailyReckoning: Not only have we always questioned the statute of faith that gold is a one-track ticket to financial salvation and that hard assets have a divine calling of going up, up, up unobstructedly. It’s worse: Turns out, we’ve been right.

At least for the time being.

As Americans were parked on their couches watching skinny girls flip, flop, and fly on parallel bars, Asian traders piled out of the euro and commodities into the U.S. dollar. In early Asian trading, the euro broke below $1.50 to hover around $1.4950 — the lowest since late February, after collapsing an incredible 2 percent on Friday.

Looks like our projection is coming true. Last week, on Aug. 5, I wrote: “Watching the undignified stampede out of oil, gold, and potash over the past days, the retreat might turn into a rout for the hedge currencies as well. We’ve seen the Hard Money Boys’ pet assets getting pummeled by 10-30% in less than two months. If the euro merely follows gold’s 10% drop, we could be looking at $1.45 before we send the kids back to school.”

Make that: Maybe by Friday.

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