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Thursday, March 13, 2008

News For Thursday -- Careening Toward a Dollar Crisis Edition!

Holy smokes!

Carlyle Capital Fails to Reach Accord; Lenders to `Promptly' Seize Assets
This has a snowball effect in the markets: Drake Management LLC, the New York based-firm started by former BlackRock Inc. money managers, said yesterday it may shut its largest hedge fund, while GO Capital Asset Management BV blocked clients from withdrawing cash from one of its funds. Other funds hit include Peloton Partners LLP's $1.8 billion ABS Fund, Tequesta Capital Advisor's mortgage fund and Focus Capital Investors LLC, which invested in midsize Swiss companies.

and that leads to ...

Dollar Falls Below 100 Yen to 12-Year Low as Carlyle's Lender Talks Fail
"Sentiment for the dollar continues to deteriorate very, very rapidly and if we're not careful this will turn into a dollar crash,'' said Mitul Kotecha, head of foreign-exchange research in London at Calyon, the securities unit of Credit Agricole SA, France's second-biggest bank.

Kuwait Moves Dinar Reference Rate 0.8 Percent After Dollar Fall to Record Kuwait moved the reference rate for dinar trading 0.8 percent today, the largest move since July and the second-largest since it dropped its peg to the dollar in May, after the dollar fell to a record low against the euro.

Crude Oil Trades Near Record as Dollar Declines to 12-Year Low Against Yen Crude oil futures traded near a record above $110 as the sinking value of the dollar attracted investors to commodity markets.

Gold Rises Close to Record in London as Weaker Dollar Boosts Haven Appeal Gold rose for a third day in London to within 0.5 percent of a record on speculation credit-market turmoil will spur demand for the metal as a haven from declines in stocks and the dollar.

South Africa Mine Output Plunged 11% in January on Power Cuts, Agency Says South Africa, the world's biggest producer of precious metals, said mining output plunged 11 percent in January after a national power shortage shut mines for several days.

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