Bill Gross is watching the US Dollar: "Global willingness to accept American dollars is being tested. Granted, the U.S. currency has appreciated strongly against its counterparts during most of this crisis, but technical short covering as opposed to a flight to quality may have been the dominant consideration. Watch the dollar. If it falls hard, there may be nothing policymakers can do to restore the ensuing financial chaos." Full Text
I had to add this video from Tech Ticker today (3/2/09) with Roubini explaining why Gross is wrong. Either way something needs to happen fast. The Dow broke 7,000 (at 6,824) and the S&P is testing 700 (at 707) down more than 50% from the October 2007 peak. Truly a disaster!