Monday, October 13, 2008

Currency Exchange

The Dollar started to gain value against the Euro about a month ago, right around the time the current financial crsis started to his Europe and talks of a 700 billion dollar bail out plan began. In the past month international markets have been up an down and down and up. I don't have much money in the stock market and I don't have a 401K but these fluctuations have had a significant impact on my life.
As an American living in the Euro zone but maintaining a dollar bank account I watch the currency exchange rate a lot more than most and can tell you there is a seemingly strong correlation to the stock market. Unfortunately for me, I was in the US while the Dollar gained on the Euro and as soon as I return the dollar is instantly down 2 cents to the Euro. Ultimately, I shouldn't complain at all as the dollar was at it's lowest in comparisson to the Euro a few short months ago but for me the timing, couldn't have been worse. I spent the last 3 weeks in the US and in 2 days I begin a new job where I will be paid in Euros. It felt so nice to think of my Euro income in dollars at a ration of 1:1.60 and now I'm looking at 1:1.35 - it's like I've had a decrease in pay before I even begin. I guess if this is the worst I see of the financial crsis (more expensive trips home) then I shouldn't complain. While in the US, I really began to realize the seriousness of the situation. People are losing their jobs or seeing decreases in hours. Consturction is being scaled back and layoffs are more prominent than last year in this volitile industry. I'm thankful to be living outside of the US during this time but worry for my family and friends at home, for the economy and for the reutation of our nation. I am thankful that Bush is about to be out of the Whitehouse and hopefl that Obama will make it in and be able to enact change. Now more than ever, I see a need for a strong government and hope that my country will be able to come out of this "financial crsis" on top. I'm off to secure my place as an absentee voter...

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