Dollar Mostly Gains As Investors Seek Safety

NEW YORK -- The dollar was mostly higher Wednesday as a report on the housing sector added to worries about the strength of the U.S. economy's rebound, boosting the buck's appeal as a haven.

Investors tend to buy the dollar, with its access to the huge, liquid U.S. Treasury supply, when economic reports, corporate earnings or other developments make them feel uneasy about the state of the economy.

"Currency markets are exhibiting classic risk-aversion characteristics this morning," wrote Credit Suisse analysts in a research note.

The 16-nation euro fell to $1.4719 in late trading in New York from $1.4809 late Tuesday. Meanwhile, the British pound rose to $1.6413 from $1.6386, while the dollar tumbled to 90.79 Japanese yen from 91.81 yen.

Read Full Story 

NewsMax.com

Lieberman: I'll block vote on Reid plan

Sen. Joe Lieberman (I-Conn.) said Tuesday that he’d back a GOP filibuster of Senate Majority Leader Harry Reid’s health care reform bill.

Lieberman, who caucuses with Democrats and is positioning himself as a fiscal hawk on the issue, said he opposes any health care bill that includes a government-run insurance program — even if it includes a provision allowing states to opt out of the program, as Reid has said the Senate bill will.

"We're trying to do too much at once," Lieberman said. “To put this government-created insurance company on top of everything else is just asking for trouble for the taxpayers, for the premium payers and for the national debt. I don’t think we need it now."

Asked about Lieberman’s threat to filibuster a final vote on the Reid plan, White House press secretary Robert Gibbs said: "I haven't seen the report from Sen. Lieberman or why he's saying what he's saying. I think Democrats and Republicans alike will be held accountable by their constituents who want to see health care reform enacted this year.”

Lieberman said that he’d vote against a public option plan “even with an opt-out because it still creates a whole new government entitlement program for which taxpayers will be on the line."

His comments confirmed that Reid is short of the 60 votes needed to advance the bill out of the Senate, even after Reid included the opt-out provision. Several other moderate Democrats expressed skepticism at the proposal as well, but most of the wavering Democratic senators did not go as far as Lieberman Tuesday, saying they were waiting to see the details.

Lieberman did say he's "strongly inclined" to vote to proceed to the debate, but that he’ll ultimately vote to block a floor vote on the bill if it isn’t changed first.

"I've told Sen. Reid that if the bill stays as it is now I will vote against cloture,” he said.

“I can’t see a way in which I could vote for cloture on any bill that contained a creation of a government-operated-run insurance company,” Lieberman added. “It’s just asking for trouble – in the end, the taxpayers are going to pay and probably all people who have health insurance are going to see their premiums go up because there’s going to be cost shifting as there has been for Medicare and Medicaid.”

Reid’s response was restrained.

“I don't have anyone that I have worked harder with, have more respect for in the Senate than Joe Lieberman,” he said Tuesday afternoon. “ As you know, he's my friend. There are a lot of senators, Democrat and Republicans, who don't like part of what's in this bill that we sent over to CBO. We're going to see what the final product is. We're not there yet. Sen. Lieberman will let us get on [to begin debating] the bill, and he'll be involved in the amendment process.”

Lieberman said he “very much” wants to vote for health care reform but that he’s worried about stifling “the economic recovery we’re in” or adding to the federal debt.

“I feel this way about a national, government-created health insurance company – whether it’s a trigger or not,” he said. “My answer is – we’re – we have the opportunity to do some great reforms here. These exchanges that we’re talking about, I think, are going to drive competition and probably bring the cost of health insurance down or at least contain the cost increases for a lot of people. Let’s give that two or three years to see how it works to see how it works before we talk about creating another entitlement that will end up increasing the national debt and putting more of a burden on taxpayers.”


By: Manu Raju 
Politico.com