The Rising Dollar's Relationship to Interest Rates

Previously in Transcendental Generalization:

Long-term interest rates are almost always higher than short-term rates, which is why thrifts can profit.

On 5 Oct., Jay Hancock wrote in the Baltimore Sun…

Dollar strength means the Chinese, Indians, Japanese and world's other great savers will continue to finance U.S. consumers with low long-term interest rates. Dollar strength suggests U.S. housing prices will level off or fall only slightly after their spectacular rise, avoiding the mortgage-rate spike that some believed would cause a crash.

Tags: Business

Updated at: 6 November 2005 8:11 AM

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