Mike,
<<"When China devalues, at least we do not have to worry about inflation in the US, as the markets will be down severely for the next few months." I'm not quite sure if you were trying to be funny, but that is pretty hilarious. It's sort of like saying to a person, as his house is burning down, "Well at least you won't have to worry about hurricane season." >>
Exactly. As the thread has repeatedly reflected, particularly from Worswick, the problem is deflation, diminishing demand, and global overcapacity.
Mike, many many thanks for your diligence on capturing earnings warnings that reference the economic problems in Asia as a causal influence. I would wager we are not seeing managers grab for the latest excuse but rather we are seeing the real arrival of Asia's economic problems on American shores. It will take time to sink in IMO and it is not at all clear to me what the lasting effects will be. I have been much more informed by your detective work and your comments about the "Asia is good for our economy" antithesis. What I suspect is that between your posts and Zeev's views there is a Hegelian Synthesis of some kind.
I hope so.
best,
Stitch |
