Dead Money?

The US greenback has taken a major hit in the currency markets since the Fed rate cut on Tuesday. Incredibly, there's actually some debate over whether a weaker dollar is good for the US. It's not. Our currency is being devalued so rapidly that we risk becoming a third world economy. Since we import nearly everything, and have negative trade balances with just about every country in the world, expectations for inflation run rampant.

Dow 13,820.19 +53.49; NASDAQ 2,671.22 +16.93; S&P 500 1,525.75 +7.00; NYSE Composite 9,981.83 +45.36

That doesn't matter to Wall Street, or so it appears. The stock market, continues to cruise along as though nothing unforeseen is occurring. All the time, the value of the dollar is being eroded - and rapidly.

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Bernanke's rate cuts may have been a potent tonic for stocks, but it's been toxic acid for the currency.

On Friday, there was some limited buying on solid volume, with advancers outpacing decliners by a 3-2 margin. New highs totaled 286, to 131 new lows.

Oil and gold eased modestly, while silver rose 15 cents to 13.62. With options expiring, a tumultuous week ended on a somewhat positive note, though many inefficiencies still need to be wrung out. Monday and Tuesday may offer more direction.