I have watched my interest rate on US$ slip to under 1%.
That's one reason I was asking you about yields Down Under. Also, it's my understanding that the Aussie economy is largely commodity related, and any upsurge in commodity prices will tend to strengthen that currency. The continuing industrialization of China and India should mean demand for copper, lumber, and other such commodities will continue for a number of years. Any thoughts along this line? You probably have more knowledge of this than I do.
But, amazingly, our great and estimable idol, Alan Green$pan KBE, contrived to provide a soft monetary landing, so that margins could be reduced, markets cleared and life could go on.
Be careful about this- there's some rather smart folks who seem to think that all that The Green Knight did was to buy some time before the next leg of the implosion. I dunno if they're right, of course- but these analysts have made some predictions that we can look for. They think there is a huge bubble in the American mortgage market (Fannie Mae, Freddy Mac), and that it will be the next bubble to pop. RE prices in my county were up over 20% this last year, and they weren't cheap by any means before that. If the there is a housing bubble that bursts, the whole world economy will slow. Americans have been spending their home equity, via lines of credit, and buying everything in sight. If housing prices simply stop rising, that money-machine will come to a halt. If prices fall.... well, what's the title of our thread? lol. |
