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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: steve susko who wrote (51622)5/17/2002 3:09:54 PM
From: Jim Willie CB  Read Replies (1) of 65232
 
falling dollar contributes to lower real estate prices indirectly
because falling dollar leads to higher interest rates
if also it brings tougher economy, then job situation affected

if very gradual falling dollar, then good for exporter competitiveness
but currencies dont move slowly
their quick movement usually leads to disappearing investment capital much much faster than the benefits of improved competitive pricing

I think shorterm falling dollar hurts interest rates, hurts jobs
longer term falling dollar hurts interest rates, helps jobs

I dont think any of this is beneficial to real estate
but real estate is very sturdy
to move prices down, rates would have to rise more than a tad
and job security would have to change more than a little

the shorterm picture is eroding for our indebted currency
the major stock indexes track the USdollar today almost exactly

quotes.ino.com
/ jim
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