Maybe a Spark of Life at the End of the Tunnel…

  • Npr.org: Q & A: What the Fall of the Dollar Really Means For the seventh time in a month, the U.S. dollar hit a record low against the euro Wednesday, falling to $1.3160 from $1.3086 late Tuesday. In recent months, the U.S. dollar has also lost ground to the yen and the Canadian dollar. Most of us know that when the value of the dollar falls, we end up paying more for imported goods. But how else does this affect the U.S. economy? We turned to Mark Zandi, chief economist for the consulting firm Economy.com, for a primer on what the dollar’s fall really means.
  • It looks like there may be a few good things with the fall of the dollar. 1) US consumers may become more responsible and increase their savings, 2) The US economy will begin to produce more than it consumes, strengthening the economy for the long run, 3) The government will be forced to be more fiscally responsible, 4) US products will become cheaper for foreign consumers to purchase, which will increase spending on US products.

    That’s the good news. However, it will take a period of adjustment to get there. Time to save and lock in fixed rates on any long term loans. And hold on to your hat, it’s likely to be quite a ride…