[an error occurred while processing this directive]
PFBlog logo

My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

  Home | Feed: feed-icon.gif | About | Progress: June 07: $756,924 | Best of PFBlog | Product Reviews | PFBlog Digest | Disclaimer | Advertise | Contact Me

Foreign Banks May Impact Mortgage Rates



Greg McBride explained in this BankRate article why changed behavior of foreign banks, like the recent rate cut in Japan and Canada, will bring upward pressure for US domestic long-term interest rates.

The theory: foreign banks wants to keep the exchange rate for US dollar stable to avoid impact to local exporting industries. They used to buy dollar in the foreign exchange market, and invest the dollar in the Treasuries, which keeps the US long-term interest rates at bay. Now that Fed is in no hurry to increase US interest rates, foreign banks are switching gears by lowering domestic interest rates (and thus making local currencies less attractive). Their decreasing appetite in buying US dollar (and therefore the US Treasuries) may bring US long-term interest rates higher.

null

What do you think of this post? Be the first to share your opinions.
Similar Posts

No More Free Ride? (February 22, 2004)
CFO Magazine speculates that the end of the tax-friendly status of online commerce and Internet access is close. First, cash-strapped states now have a lot of incentives to assess tax on the booming businesses of Internet commerce. Second, the Streamlined Sales Tax Project is taking ... Read
Understanding Poverty in America (February 12, 2004)
What is poverty? Walter E. Williams put its definition this way in his article "How can it be?": Read
The Great Supply-Side Experiment of 2003 (January 03, 2004)
Jerry Bowyer in this article argued the 2003 Bush tax cut provides evidence that the dubious claim of the supply-side economics, "cuts in marginal tax rates can actually lead to increases in tax revenues when tax rates are above the level of optimization," can be ... Read
All Roads Now Lead to Inflation (November 17, 2003)
Bill Fleckenstein expressed his suspicion of the economy in his "Contrarian Chronicles" column in MSN Money. He wrote: Read

Read all 17 articles in the same category.
Comments
Add Your Comments









Remember personal information?







Mail This Post
Email addresses will never be collected or sold.
Email this entry to:

Your email address:

Message (optional):




Read More ... 17 Posts In The Same Category

PREMIUM SPONSORS

Car Loans
Dallas Bankruptcy Attorney
Personal Loans
Car Finance
Homeowner Loans
Cheap Car Insurance
Mortgages UK & CCJ Mortgage
Used Cars
Loans
Commercial Mortgages and Business Loans
Guaranteed Car Finance
Payday Loan
Personal Loan
Student Loan Consolidation.com
Secured Loans
Bad Credit Loans - Free Quote