USC-Col 2006-Honors Finance/Econ Grad MD

Historic Strength for the Dollar

I believe that because of the current situation with the US the value of the dollar increased. Since the rejection of 700 billion dollar bailout, the US won't foot a debt bill with regards for paying for that particular package. We don't have to basically print more money to pay for the deal. Of course that is all that we are doing, when we raise the debt levels and don't use taxpayer dollars to lower. Our currency strengthens because it is actually worth more. I also believe that the FDIC's takeover banks who didn't know what their role as as banks, relative to the Fed and the consumers, helped maintain the US staus in the financial related. We were able to save the deposit and assets of millions of consumer while allowing lackluster banks to essentially fail. Thus we still have that money through deposits to prop our banking system up. Since other countries haven't done all they can yet to prevent the credit crunch from destroying their economies, our currency is currently holding its own versus all. Just my opinion, though, based on facts.