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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 408.23+2.3%Dec 22 4:00 PM EST
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To: energyplay who wrote (1125)10/12/2005 9:24:12 AM
From: KyrosL  Read Replies (2) of 218662
 
Good post EP. The US is by no means in dire straits. It is one of the lightest taxed countries and can fix its fiscal, trade, and foreign policy issues virtually overnight, if it wants to. It is simply suffering one of its occasional periods of bad governance.

What you say about the spread of US risk is right to the point. I bet that most of the risk from exotic US housing loans to junk bonds is being held by foreigners, via swaps and other derivatives, some even by their central banks. If the collapse ever comes, there is a good chance that the US will emerge on top again.

We all need to keep in mind that what makes a country great is not the amount of steel or other goods it produces. The Soviet Union was by far the greatest producer of steel at its zenith. Germany and Japan lay in ashes and produced zero goods not too long ago. A country's key strength is rather the basic structure and traditions of its society and how those structures and practices agree with modern capitalism. The rule of law, lack of corruption, and respect fo the commons are paramount in this respect.

The fact that there are books describing in great detail the relatively infrequent corruption in corporate America, and no such books describing such corruption in some other countries is what makes America relatively strong.

Kyros

PS Of course that does not mean I am bullish here. Still at more than 70% cash.
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