Domestic Shakes Mean Foreign Investment
Well, deteriorating economic conditions have finally reached a point where domestic firms have issued a call for help. Surprisingly, foreign investors have been heeding the call and are injecting some well-needed funds into the American economy. Rather than private investors, much of the backing of these funds comes from foreign governments themselves.
Most individuals wonder how this will affect us on a daily basis. Analysts predict a slight fluctuation in the value of the US dollar (decrease against world currency). Closer to home we will witness lenders struggling to write loans. It will likely get more expensive for student loan lenders to finance education loans. Personal loans will also be affected with higher interest rates and tougher criteria.
The Catch-22 of the situation is that while 2008 appears to host price hikes in everything from our milk & eggs to the cost in home heating, cutting back on our spending only further accelerates the recession process. In this line of thinking, what’s a person to do? Spend, but spend wisely. Buy store brands, clip coupons, wait for sales. These are certainly days to put our budgeting and smart shopping skills to the test.
