Franz,
Is it reasonable to continue this kind of analysis in order to help understands what's happening with CPQ?
I've been reading the WSJ tonight ("A Downturn Without the Usual Suspects" on page C1, and have been trying to translate the current global situation in more familiar terms. Basically they take a USA-centric view and suggest that the drop in financial markets is totally unusual because we in the US are not experiencing inflation, nor high interest rates, nor a recession. What if they expand their view and look at the turmoil and threats in the whole world in these familiar terms? Let's see... devaluation of money in many other countries means less buying power. Asia may not directly consume/buy all that much of "our" production, but they have been prodigious consumers of the world's production, and we supply copious quantities to the world. Assuming a world-centric view ANY decrease in the buying power of Asia, Russia, South America, Canada, Mexico, regardless of original cause (devaluation, Bank loan defaults, bad loan risks, economic instability) all have the net effect of causing a multi-spotted world recession. So the world IS expericiencing inflation (takes more devalued currency to buy our goods), and the banks are in trouble (interest rates for available money are higher)--- gee, these are the very culprits that don't exist in the US economy, but lo and behold we are in a world market whether we like or acknowledge it.
Eh?
Doug |
