Oct 14, 2013
Because the US dollar is the reserve currency of the world, what happens in Washington DC and at the Federal Reserve has a big effect on the rest of the world.
Likewise, how the world responds to Washington and the Fed
affects the strength of the US dollar, which in turn affects
interest rates. And interest rates affect real estate
So while the government shutdown is one level of stress, a possible debt default is a potential crisis of much larger proportions.
How will it all play out? While a traditional default is unlikely, it's very likely the debt ceiling will be raised and the dollar will continue its slow and steady slide.
When you're buying a property and getting a loan for the long
term, the long term direction of the dollar creates both challenges
and opportunities every real estate investor should be aware
Listen in as The Guys discuss the government shutdown and the great debt ceiling debate on The Real Estate Guys™ radio show!
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