Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: tradermike_1999 who started this subject	5/15/2004 3:49:26 AM
From: Seeker of Truth	Read Replies (4) of 74559

Can somebody who understands economics explain the following? Even with a rate hike of 1% in the US, the real central bank rate would still be negative. Wherein lies the attraction of the US dollar? To what lenders are US dollars attractive? I can see borrowing US dollars at these rates; I can't see lending them. The financial press nods knowingly as if the strength of the US dollar in this situation were normal behaviour, entirely to be expected. Who's crazy? That's it, maybe I am asking a question in the realm of psychiatry, not economics.

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