If you have been one among those like me wondering why Dollar is gaining strength in spite of all the crisis in the US, you may find the following article on msn interesting.
It talks about the strength gained by US dollar due to confidence lost in other asset classes and emerging markets during the crisis and the possibility of dollar weakening once the crisis starts seeing an end.
Future of US dollar exchange rates need to be kept in mind while you invest heavily in import/export oriented companies.
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http://www.nytimes.com/2009/01/20/business/economy/20builders.html
Home builders, who have good credit and have never missed a single interest payment on their loans, are also reeling in shock, today. Banks are turning down their projects, demanding more security and higher collaterals.
There more bad news. Up till now only the nation’s large home builders had been bearing the brunt but now even the small and medium-size builders are buckling under financial pressure. These small builders build 70% of homes in the US – today, as per rough estimates more than 20,000 builders have already closed their shop in the past 2 years.
Do banks really need to get this tough? To protect their interests, do they have to even take away the ‘bread and butter’ of so many home builders and the people they employ? What will home builders do now? Will things change for them in the near future?
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