A lot of this is foreign and domestic investors who are chasing higher rates of return now that rates in Europe are increasing.
It is this, which will produce downward pressure on the US Dollar, which will get our interest rates going up.
The US is dependent on foreign money flowing in for its solvency. We are like a pre-crash Argentina.
It is this, which will produce downward pressure on the US Dollar, which will get our interest rates going up.
The US is dependent on foreign money flowing in for its solvency. We are like a pre-crash Argentina.
Rate woes sack stocks
Major gauges slip as investors eye ECB rate hike, rise in unit labor costs, Lacker comments, home price outlook.
By Alexandra Twin, CNNMoney.com senior writer
June 6 2007: 11:07 AM EDT
NEW YORK (CNNMoney.com) -- Stocks tumbled Wednesday morning as investors absorbed reports that suggested rising inflation, higher interest rates and a bigger-than-expected drag from the housing market going forward.
The Dow Jones industrial average (down 92.49 to 13,502.97, Charts) lost around 100 points, or more than 0.8 percent 90 minutes into the session. The broader S&P 500 index (down 13.41 to 1,517.54, Charts) lost 0.8 percent. The Nasdaq composite (down 22.94 to 2,588.29, Charts) gave up 0.9 percent.
Stocks fell Tuesday as cautious remarks by the Federal Reserve chairman, rising Treasury yields and a strong reading on the economy raised worries that the central bank could raise interest rates later this year.
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