10.06.2011 - Why a bad housing market is great for the dollar
Robert Shiller told Reuters that he would not be surprised to see home prices fall another 10 to 25%. If Shiller is right in his prediction, that may be extremely bullish for the U.S. dollar as deflation ravages the economy. Deflation means an appreciating dollar. Though investors may see falling housing prices as a negative for future economic growth in the U.S., and therefore the U.S. dollar, the dollar has the unique advantage of being the world's reserve currency...............................................Full Article: Source
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