By James McKee
Yes it is true, the US Dollar has not exactly been the most stable currency for more than a decade now, but as new government regulations take shape in America the US dollar is fast becoming an even greater symbol of instability. There is a lot of political debate about how to fix the ailing economy in the United States and around the world but as time goes on the two overwhelming schools of thought seem to be that of extreme regulation and aid on one hand and on the other hand you have those who believe that the answer is to let the market correct itself. Regardless of which political ideology you subscribe to one cannot deny the fact that the US Dollar has been and will be in trouble for some time to come.
Among these regulations are those which attempt to place restrictions and regulations upon banks which operate within the housing market. These restrictions are due to the fact that government officials believe that contracts signed by banks are actually signed in bulk when it comes to the housing market, this in turn means that these contracts are not reviewed and are in fact irresponsible to issue as a lending institution. Due to new regulations sales of foreclosed houses has been put on hold indefinitely via a moratorium for Bank Of America foreclosures.
It’s not clear yet whether or not this moratorium will be emulated at other banks, but that is the current consensus of many financial analysts. This could spell out immense trouble for the US currency because if banks are forced to sit on large assets such as homes there will definitely be adverse consequences. This is one of those times I am going to sit back and examine the behaviors of other banks with regard to how they manage their foreclosed properties before I apply current events to my analysis, but it is most definitely something I will be keeping an eye on.
I do not presume to know everything about Forex or even investments in general but I would like to think I can spot a change in the market. My previous articles in regard to spotting current events applicable to the market (such as political tension between Japan and China) are on par with this article. As with anything else take what I say with a grain of salt and do your own investigation before calling your forex broker. Happy Trading!
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado with 5 years of experience in trading with an attitude of cooperation through education. It is vital to remain in the loop where new technologies are concerned, make sure to stay up to date on the latest developments and always look for the best forex broker possible when trading!
