SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Currencies and the Global Capital Markets
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Henry Volquardsen who wrote (1506)5/13/1999 10:21:00 AM
From: Sam  Read Replies (1) of 3536
 
Henry,
<<A weaker dollar will have an almost immediate impact on their competitiveness and severely crimp their recoveries. The question then would be how deep the correction in US markets had been; very deep and severe psychological damage would probably fold out into a harsher long term correction, a shallow correction and the US markets will probably regain some safe haven status as foreign markets slow.>>
I'm not sure what you mean by a "deep" correction. The world needs the US as much as or more than the US needs the world. They can't afford for this country to have such a deep correction that buying power is diminished too much. That will create a nasty spiral. We are the most enthusiastic consumers in the world, a cultural talent that is often publicly derided but implicitly appreciated, and can't be developed by governmental fiat. Even if they "hate" us, they will grit their teeth and send their money here if equity values get too low because they have to. In the end, that may make any correction that may occur wiull be less severe than the one that Japan has experienced since '89. At least, as long as governmental "action" doesn't muck up the equilibriating forces that you so often and eloquently refer to in your wonderful posts to this and other threads.

s.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News