<<They paint a rather gloomy picture for the immediate future>>>
Jack, Being a 'bear' (aren't you?), I thought you might like it.<gg>
As for my comment of the U.S economy and its strength, I would have to go with Abby Cohen (though Sankar might disagree,I refer you to his recent post). According to her,by and large U.S economy is mostly about her domestic market. She continues to say that the leading trade partners of the U.S are Canada,Mexico and North & Latin America in general, and S.E.Asia represents only 13% of the total U.S GDP,so even if the whole SEA countries shuts down completely tomorrow, U.S still would come out with only minor bruises.Assuming this is not going to happen and assuming europe is still in pretty good shape,the U.S economy should do ok, may be not as good as 97.
However Sankar's concern about the macro economic weakness of the U.S economy seems rational, at least on an academic level. But then again there are economists of repute out there who thinks and argues that a larger deficit is better for the U.S economy as opposed to a lesser deficit or no deficit at all.
Here is the link for Bear Sterns:
bearstearns.com |
