Will the real estate subprime lending debacle reverse support for the Dollar?
*Reuters, by Jennifer Ablan, March 14, 2007
“The deepest housing decline in 16 years could slow an inflow of global capital that has more than funded the massive fiscal and external deficits in the United States.
For years overseas investors have been buyers of American corporate debt, mortgage-backed securities and agency bonds at record pace, helping cover the U.S. current-account deficit — the broadest measure of international transactions.
But the rapid unraveling of the U.S. subprime mortgage industry, which is stirring new concerns about the already weak housing market, could change all of that.”
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