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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Lee who wrote (66948)7/27/2006 2:01:01 AM
From: John Vosilla  Read Replies (2) of 110194
 
'A rising current account deficit is no longer a sign of weakness in this context. The fact that global savers accommodate U.S. consumers by keeping U.S. interest rates lower than they otherwise would be and the dollar stronger than it otherwise would be is simply a manifestation of America’s comparative advantage at supplying wealth storage facilities.'

So this results in more overvalued assets and excessive consumption patterns by Americans thereby creating even more cash to redeploy for the new wealthy class outside the US that still has only one wealth storage facility to hide in?

Thanks for a very interesting article. These feedback loops, though, are getting kind of scary like global warming to me.
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