Sunday, Mar 16, 2008
US debts, wrap up so far
Wall Street Journal: Debt Reckoning: U.S. Receives a Margin Call
Nothing new here, just an excellent piece of journalism of where we are now in the bad debt problem. Rather than be surprised about the dollar's fall this is just payback for more than a decade of trade and budget deficits. I know some contributors to this site expect a $ rebound but seen in this light that seems unlikely.
"Many U.S. hedge funds and financial institutions were speculating in mortgage-related securities with money that was ultimately borrowed in Japan, where interest rates have been low for years... As investments bought with money borrowed in Japan get sold and converted back into yen, we see both a fall in asset prices and a fall in the dollar."
Posted by happyrenterz @ 11:27 AM (229 views) Add Comment
1 Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. harold said...
"I know some contributors to this site expect a $ rebound but seen in this light that seems unlikely. "
Who knows? It's certainly going to ba an interesting week.
Bring out yur dead, bring out yur dead...