Dollar getting support...

American Government was facing serious problems supporting the US Currency Dollar in the international market.

Everytime they were increasing the Interest rates to support the dollar it was having negative impact on the American Domestic market by further putting the American Homeowners in problems due to the prevailing Mortgage difficulties.

Now the Bush Government has come up with an idea to solve this problem.

They have put a freeze on the Home Mortgage interest rates.

Yes Sir, Bush has decided to freeze the Mortgage interest rate.

This means they will now be able to increase the interest rates to support the Dollar without increasing the interest rate on the American Homeowners.

Smart move.

Expect increase in the interest rates. Dollar should get stronger because of this action.

Higher interest will attract investors to their bonds and funds market.

America wants dollar to get strong and stay strong so that Arabs do not swtch to other currencies and to gold and silver.


Resource : MYLGI group (YAHOO GROUPS)
http://www.bloomberg.com/apps/news?pid=20601087&sid=asetzdsdmBUE&refer=home