Dollar weakness is strength

The US Federal Reserve’s half percent cut in the overnight interest rate was a bold shot to restore confidence in the US economy. Will it work? The challenge is great. Rising house prices have helped to propel US growth since 2001. In 2006 alone, they added $1.1 trillion to the assets of American households: a colossal rise, equivalent to 8% of GDP. That paper wealth fed into real spending, through both refinancing and enhanced confidence. But now that house prices are falling in many parts of ...