Posted on 11/22/2007 6:59:12 PM PST by PotatoHeadMick
Not only more export, but less export competition for business that only supply the domestic market. For example, Canadian and Mexican ag is less a factor for US farmers now.
What? Do you mean they'll turn to the world's remaining superpower and strongest economy for their investments? Shocking.
Let's see what all the doom and gloomers have to say. Good article.
That savings rate does not include 401k plans, other employer sponsored plans. If you factored that into the national savings rate, you’d see a different picture altogether.
It is good news! A stronger manufacturing base will strengthen our Nation. And here’s some related news for a grin.
Why Wait? More Stores Open for Thanksgiving Shoppers
http://www.freerepublic.com/focus/f-news/1929467/posts
Yes, when the get rich quick schemes fail, we’ll more than likely see some renewed interest in companies that have real earnings, with decent valuations. You can’t blame investors overseas for avoiding the US market, despite valuations that are at buying levels, the currency factor has pretty much kept them out of here. Eventually the US dollar will strengthen, and a very sudden up move should ensue?
I've read that enough times to believe it to be true, but what is the rationale? Can you explain the underlying methodology?
Nor does it include premium products such as life insurance cash values and annuities does it? How about people who make regular payments into mutual funds?
Seems as stupid as not including food and energy in the inflation number.
I’m going to guess, that the reason why it is not counted, is the limited ability to access the funds. So, yes, the money can’t be used as savings for near term emergencies/needs/desires, but it certainly goes a long way to fund retirement? Since most Americans will live longer as retirees, than as productive workers, it seems only logical that Americans do save a significant amount of discretionary income for this cause. Also, the tax advantages and corporate matches make the decision pretty easy too.
A large 401k balance, also creates consumer confidence. Obviously if you feel financially secure for retirement, then the idea of spending some money on luxury items, entertainment seems normal.
Maybe. That market is so vast and liquid that sudden, gap moves of immense proportion are rare. It will, IMHO, be a prolonged upward move that could last for years.
I didn’t know about insurance, but that’s pretty interesting. Are you sure about mutual funds? I also don’t think they include investment into r/e, the equity that is created within that holding.
Frankly, who wants a developed economy, only putting money into bank products? That is hardly good for economic growth is it?
The USD move down sure has been a big one! Looking at a long term chart, the USD took a massive plunge back in the very early 80s, coincides with the Reagan bull market. Just a hunch, but when the dollar does turn, it will be very sharp, last a long time. I base this on the amount of money that is at the disposal of speculators, and their stated intentions of doing a complete trade reversal, going from short to long. Either way, I can’t see this current economic connundrum lasting much longer, something’s got to give, and very soon. Will be very interesting to see what consumer spending forecasts are like after this holiday w/e?
Hey, if you owe money, does not a discounted dollar mean a discounted payment, principal?
Ask Airbus how they feel about their “strong” currency. You can already hear the foreign govts screaming unfair/foul at the fed policy that is creating this weak dollar...
Yes, there are some drawbacks, but the big one, spiking costs of borrowing, are not in the mix right now.
Hey Air bus is hurting. But you know what. So is every American that actually has savings. The day may come soon when it costs $1000.00 for a loaf of bread. Just ask other country’s that have gone down this road.
Dollars are ounces. if you make them smaller, you just count out more to make your pie.
Many people are making periodic payments into variable and fixed annuities also. These are purely retirement products.
As for mutual funds, I can't tell you how many times I have had mutual funds wired into accounts that I am taking over that have a history of periodic payments. I know because we have a hell of a time figuring out the basis for possible future sale.
Bank products are eaten up by inflation and taxes. There are many products out there that are sold as alternatives explicity to taxable CD's. And, no I don't think home equity is included. Even though a lot of seniors downsize and take out equity to retire on.
Oh, yes. And even better, outsourcing or even relocating to foreign countries (something that many FReepers go ballistic over) becomes more and more unattractive to American companies as the dollar falls. In fact, companies in other countries will outsource their work to the US as being more economical for them. So a falling dollar means more American jobs.
Even worse for our trading partner China - a falling dollar means that their products are therefore less desirable.
I got wind of a Goldman Sachs report to its clients about a month ago. They said the same thing. Currency RSI's show extremely overbought. Sell.
They were a month early SO FAR but probably right on the major direction very soon.
The third traditional reason to save was for a big purchase, but today we just put it on a credit card.
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