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To: Rarebird who wrote (38072)7/30/1999 1:33:00 PM
From: Hawkmoon  Read Replies (1) | Respond to of 116762
 
Rarebird,

Why would people put money into countries who are, by their very economic strategies, profiting from the US trade deficit?

If the trade deficit contracts, that equates to less revenues and earnings for corporations in these countries. That, in turn, prompts these economies to undertake policies that will devalue their currencies even more to restore that trade advantage. Devalue their currency and their stock markets will suffer from the weakness that results in their currencies.

Think about it.

This is short-term.

Asia and Europe need our markets to hold their recoveries intact. Without the US, they will falter.