When Alan Greenspan introduced multiple rate cuts for Fed, US market was salvaged after post 9/11. Mortgage and financial houses start taking opportunities to maximise their profits by introducing sub-prime. With a default rate of less than 20%, it is very profitable for them.

And as this accumulates, it forms a bubble waiting to explode. It almost did in march this year and it surfaced again in august. What Bernanke did was to introduce .5 rate cut which almost solved this problem.

From my point of view, they are just replacing one bubble with another bubble.

USDSGD is now at 1.489, Canadian dollar is almost on par with USD now.

Although lower USD improves trades for US but there are other concerns to take good note of.

Just watch out for the next big one... cos it will be really really really big!

we might even test last nov levels