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Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 220.17-6.4%3:59 PM EST

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To: willcousa who wrote (10274)6/8/2004 7:57:07 PM
From: Cary Salsberg  Read Replies (2) of 25522
 
RE: "...why haven't 50 years of them...already done us in?"

As has been pointed out, budget and trade deficits must be measured relative to the size of GDP and the federal budget. Also, while our goods were not generating sufficient demand, our stability made our debt instruments and other investments in the US attractive. We have been able to manage without sacrificing too much growth. The situation has changed, as has also been pointed out, and we don't seem to have an economy that can continue to shrug off budget and trade deficits.
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