Quote:
Originally Posted by ptaczek
I see  They are cutting rates to heat-up the economy. If you think of the interest rate as of a heating/cooling know, then by cutting the interest rates you are trying to heat-up the economy that has cooled down (slowed down due to some events in the country or the world or both).
By rising the interest rates you are cooling an overheated economy.
So by cutting the rates of USD, the FED is trying to divert from recession which is about to happen due to the mortgage crisis. |
about mortage crisis, that's just give serious affect to USD or will give affect to other major currencies ?
i know if many Bank invest their part of funds to mortage on US, so i don't know on England or many european country ?
