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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (86220)	12/4/2000 12:06:02 PM
From: Mike M2	Respond to of 132070

M, I don't have figures for foreign ownership but it is probably substantial enough to have an adverse impact and a falling dollar will trigger sales. Government budget deficits will return once capital gains vanish. A falling dollar will mean product price inflation for imported goods. At some point the combination of a heavily indebted private sector ( personal & corporate), the absence of the wealth effect and a rise in personal savings rate as a result of the disappearance of the stock market's wealth effect will act to reduce our record trade deficits. One critical point concerning the US $ strength vs Euro weakness debate which is conveniently ignored by Wall St is that the single biggest item among recorded US capital inflows is borrowing corporations and GSEs in European credit markets. euros are sold ( depressing the euro) to buy dollars ( strengthening the $) This amounted to $255 billion in 1999. The only thing stupid about your questions is that you are asking me! -vbg- mike ho ho ho