Isn't Australian/NZ weakness due in part to heavy raw materials
export component to their economy, with (I presume) much
exported to Asia? Whereas we are much less directly exposed,
although our manufactured goods exports to Asia are presumably
suffering, and going to continue to suffer, from the double whammy
of low/negative Asian income growth and low Asian currencies.
Still, AU/NZ part of a spreading global contractionary shock...
Low prices on many raw materials arguably relatively better for
the US, esp. oil... a positive supply shock that is helping sustain
noninflationary growth here...
On Monday when long bond yields were down below 5.8,
the morning "market check" article
that comes up every few hours on Yahoo interviewed some trader
type who said that "foreign
accounts were the most active"... Asian capital flight continues,
I think.
Bought IFN yesterday at 7... hoping for a bounce when people realize
BJP may be saber-rattlers, but not truly insane...
That is rather risky, since continued Asian market meltdown could
take India down further too... but India is relatively self-contained
economy, and relatively uncorrelated with the US from what I understand.
Cheers,
HB |
