DD,
My take on the possible interest rate hike is it won't happen right now. If the Fed raises rates, the dollar will go up even further, and this will hurt overseas sales, hence hurt exports. With the Asian currency so blasted, this will put a trade imbalance in place that the Fed won't want. So, until Asian currencies get stabilized, I don't think the Fed will act. We are in an economic condition worldwide that is unique. So, they have to change their way of thinking. I think European markets are overbought right now, and with the controversary on the Eurodollar, who knows how their markets will react. So, our dollar has to remain stable for a little bit to help calm the world down. If interest rates go up. there goes the dollar. Maybe this is a simplistic way of looking at it, but that is my opinion......
Oh well, keep smiling. it helps you to stay warm,
Redhead |
