Supermodel Bundchen Joins Hedge Funds Dumping Dollars

“Nov. 5 (Bloomberg) -- Gisele Bundchen wants to remain the world's richest model and is insisting that she be paid in almost any currency but the U.S. dollar.

Like billionaire investors Warren Buffett and Bill Gross, the Brazilian supermodel, who Forbes magazine says earns more than anyone in her industry, is at the top of a growing list of rich people who have concluded that the currency can only depreciate because Americans led by President George W. Bush are living beyond their means. “

Read the complete Bloomberg story here. You’ll learn more about exchange rates when we cover Chapter 19 at the end of the course. If you do any travelling outside the United States you will know that the U.S. dollar has been depreciating against most other currencies for several years. I wish I had been paid in Euros in the last several years. I wouldn’t have needed a raise denominated in dollars.

Extra Credit:Three years ago Suzie Q Hilton left California to seek her fortune in Euroland as a super model. Upon arrival in Euroland Suzie took $10,000 (USA) and opened up a checking account denominated in Euros, but paying no interest. Suzie has decided to return to the good old USA and luckily for her she didn’t need to spend any of the Euros in her account. If Suzie takes her Euros and exchanges them for dollars, how many real dollars will she have now after three years in Europe? Explain your answer. If you are the first student to send me an e-mail (kwoodward@saddleback.edu) with the answer, you will be rewarded with two extra credit Discussion Board points. Only two points extra credit per student can be earned in any given week from the blog questions.