Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 239.79

-1.4%

11:20 AM EST

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To: Robert Rose who wrote (91658)	1/21/2000 12:21:00 AM
From: GST	Read Replies (1) of 164684

Robert: Trade deficits must be financed by foreigners - pure and simple. When they decide to leave, the party ends. To believe the stock market will rise along with the trade deficit is to believe that foreigners will pump hundreds of billions of dollars per year(400 to be more precise) into our financial assets forever. Foreigners are the tooth fairy. Their contribution to our little 'party' is two to three times the rate of domestic investment in 401ks and all of that. The higher the trade deficit the more we need their money. But the higher the trade deficit the riskier our markets become for them because of the currency risk. Combine that with super-high valuations and you have a 'fool's paradise' - and the fools are the ones who don't see the risk. Do you know what deleveraging and foreign selling would look like? It would look like a stock market going over Niagara falls. As Bugs Bunny would say -- bon voyage.

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