2007-09-22 10:34:25 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
The Fed lowered rates while several other central banks maintained their rates within the last month. Lower rates means lower value compared to those other currencies. It also makes exports cheaper to buyers and imports more expensive to us. Oil popped a couple bucks a barrel since the Fed announced. The Euro had gone a bit over 1.38 before but broke out up to over 1.40 now.
I don't think Bernamke wanted to lower the rate but our refusal to keep spending within means is trying to bite us in our butt. Most homes are mortgage free, and most with mortgages are fine. Even if the house value goes down it has gone up way to fast in recent years. Unless you bought in the last year or two and HAVE to move you don't have a problem. Businesses effected by foreclosures and the press spun this and the resulting fear wound up and up so the markets bounced day by day. So now you pay when you fill your tank. And savers pay when their interest decreases. And a few people will be able to keep their over mortgaged houses. All so that those fools granting overly easy mortgages can maybe sweat it out over the next year.
2007-09-22 15:16:18 · answer #1 · answered by gatzap 5 · 1⤊ 0⤋
I'm not sure the Euro going up that much. I think it is that the US Dollar is falling due to the huge debt and trade deficits in the US.
2007-09-22 10:43:31 · answer #2 · answered by G-man 3 · 1⤊ 0⤋
Is it the Euro going up -- or the Dollar going down. Look at the changes in US Debt to get your answer.
2007-09-22 10:52:34 · answer #3 · answered by Ranto 7 · 0⤊ 1⤋
See below.
2007-09-22 11:35:37 · answer #4 · answered by Anonymous · 0⤊ 2⤋