But if they enter a harsh recession (which is likely) the savings
would be used up and consumed away...
Well, not really but it's made U.S. worry about since Japan and U.S.
economic is tied together which is very hard to separate. If Japan
starts to sell U.S. bonds, bills, then U.S. may have severe inflation
problems. On the other hand, if Japan can not export goods to U.S.,
then Japan will have severe recession. Both scenarios won't happen.
Just when I look at Japan is like I look at you, they are too pessimistic about their future perspectives. They are rich but too
conservative, which ends up creating a very depressing environment
over there.
FWIW I have followed the impending crisis in Indonesia and Thailand
from about a year before it made any headlines here.
These countries (Indonesia, Thailand, Korea, and Malaysia) are small
market to U.S. Their combined exported market is about 7% of all U.S.
exports. The big ones, such as Japan, China, Taiwan, Hong Kong are
still healthy.
Back to my original point. Any one of those developments alone
should give investors a pause for thought. Instead the Dow rallies to
9,000.
I agree. This time it is running a little too fast.
Phil |
