Aug 8, 2008 6:41 pm US/Eastern
CBS4 Your Money: Week Ends With Major Oil Drop
U.S. productivity rose 2.2% in the second quarter despite a sluggish economy and weak manufacturing
MIAMI (CBS4) ―
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Traders work on the floor of the New York Stock Exchange.
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A strong U.S. dollar rally is considered a good sign this week. While European currencies such as the euro, the pound and other dollar rivals are flailing due to the weakness of their domestic economies, it is giving rise to the dollar, which is in turn lowering oil prices.
At the start of the week, Monday, crude oil prices continued to fall even as Tropical Storm Edouard approached the oilfields off the Texas coast. It's another sign that the oil price bubble could be bursting.
On Tuesday, the Federal Reserve met in Washington and left interest rates unchanged at two percent as Uncle Sam tried to find a middle way between the economic slowdown and skyrocketing inflation.
On Wednesday, the fallout from the continuing credit crunch came when mortgage giant Freddie Mac posted a second quarter loss of $821-million, much larger than expected.
On Thursday, there was more bad news on the employment front as jobless claims rose again. There were 455,000 Americans out of work, the worst showing since 2002.
At the end of the week there was a bright spot in South Florida's real estate market as it became a number one choice for international investors.
The Sunshine State accounts for 25 percent of all U.S. home and condo sales by foreigners.
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