well, as for what the bill does for housing, i personally dont feel it will do
much, but i turn to people like you (t-bird) to tell me such things. i dont have
that kind of wisdom.

as for the $USD, since others were talking about it, current account deficit and
interest rates! anyone who has traded forex knows these are crucial to any
currency (no, they arent the *only* things, but they are the most important).
the USD can move vs the yen, i think the euro is weak--for now--but the dollar
needs less debt, more certainty i.e. war in iraq, and higher rates.

bank stocks? egh, i dont know. they may pop, too many people will see this as
bullish, but im a skeptic of such a view

the financing of this is troubling....but this is an amazing article and i
agree..treasury credit it is

http://www.usatoday.com/money/economy/housing/2008-07-15-paulson-fannie-freddie_
N.htm


the job is to provide liquidity (sure in another way) but still liquidity is
necessary in the housing market. This will do it, but not immediately like
congress thinks. over good time

kbrim, i see your point, but how can you spend what ya dont have, ie. consumers
gov..ect. i fear were at a tipping point,

well its benefical the legislation has provisions which work out the loans at a
value of the true houses costs. That means lenders will suffer even further, but
do they really suffer further (no). This is a voluntary program and lenders wont
agree to such conditions unless they think they would be unprofitable otherwise.
So in reality this will allow housing to come off the inventory market,
consumers to retain their purchasing power because loans are cheaper also. These
loans carry a nice insurance premium also to prevent another huge downturn as
such. I think at this point in time such legislation is necessary because
inventory is building up and republicans badly want to win the election (trying
extra hard not to be blamed for a depressed economy and further depressed
housing prices)..im sure they will also restrict loans also based on FICO scores
which will ensure further price stability. Such measures were lacking with our
sub prime friends. Will the dollar drop, obviously no one knows but i think this
ensures long term prosperity for the dollar. And if anything it can only cause
short term help to the dollar as the housing market booms due to new buyers
stepping into the market. Also consumer confidence will jump due to the fact
that consumers are most gloomy currently about their houses. Once houses and gas
are settled the consumer will be relatively much healthier allowing for a better
economic environment for the dollar to flourish because our consumers can go out
and buy more goods.

im wondering the same, does the dollar drop because of this? or strenghten on
this? im against a bail out, george is not fiscally responsible