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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (7279)8/16/2001 9:32:14 PM
From: Hawkmoon  Read Replies (1) of 74559
 
One aspect that I find important is that the US productivity held pretty strongly in the past quarter. Of course, we know that it's because there were so many lay offs of excess labor in US companies (fewer worker hours spent to produce a set amount of goods).

European and Japanese companies don't have such a luxury, and as their economies slow, their productivity will decline (or be "manipulated"). Their companies will not be able to retrench and restructure sufficiently to attract investor dollars looking for increasing profit margins.

In a nutshell, that's one of the major paradigms that lead me to believe the US will lead the world out of this downturn once some of the excesses are wrung out.

Hawk
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