The Residential Real Estate Crash Index Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Elroy Jetson who wrote (28348)	3/18/2005 7:53:13 PM
From: rich evans	Read Replies (3) of 306849

Elroy, that is not a simple example. When you moved your factory to Malaysia, all your earnings were counted as positive to the US current account according to Mr. Poole. Your labor paid in foreign currency 5-10% of COGS but your material costs 80% could be in dollars or another foreign currency. Your profits would be in dollars probably if goods sold in US and be positive to our current account. When you reincorporated in Bermuda, you are now a foreign corporation and all the earnings are treated as negative to our current account according to the St. Louis Fed article/speech. So the effects of all this are hard for me to grasp. Greenspan seems to think the capital surplus returned to the US arising from the deficit has funded our capex,R&D, productivity etc since our savings rate is so low. Buffett thinks totally diffently from his letter. Two heavyweights who are talking opposite. I can only say: I don't know, I am afraid. Rich

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next