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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (802)	5/6/2003 11:16:28 PM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 4912

dAK, IF foreign investment in the US continues to dry up, a gaint game of dominoes could endanger all the big employment sectors of the US economy. Given the disproportionate demand that emanates from the US economy, were the dominoes to topple, failure of the US economy would virtually guarantee total failure of the global economy. There would be no economy on earth unaffected by the consequences. This is truly a "united we stand, divided we fall" situation. KJC

To: LLCF who wrote (802)	5/7/2003 1:45:32 AM
From: Cogito Ergo Sum	Read Replies (2) \| Respond to of 4912

Dak, dominoes could endanger all the big employment sectors of the US economy. with the widening differential between the Euro and the Greenback can't you you just see all those French and Germans just salivating over a brand new Taurus ? or maybe a Malibu ? Then again there is that Caddy in the commercial with the Led Zep tune ;o) Kastel

To: LLCF who wrote (802)	5/7/2003 10:54:36 AM
From: Wyätt Gwyön	Read Replies (3) \| Respond to of 4912

local paper today had article about DELL opening a new call center in Panama. they're even cheaper than Indians. paying Panamanians $2.76 an hour instead of paying US workers $25 an hour. in January Panama repealed a $1 per call tax on call-center calls. DELL and others will take advantage of this to open call centers there. the article noted that Indians make good call center workers not only because they are cheap, but because they view a call center job as a career, not just a blip between bouts of unemployment as is common in the US. thus attrition rates are lower (=higher productivity than the US). who'da thunkit: foreigners are better workers than Americans. also, PeopleSoft announces new lab for India. great news for the US service sector just keeps piling up. but if jobs continue to be lost, who are they going to service exactly. latte-pourers and backrubbers need to subsist on somebody who's creating value or you just have a Ponzi scheme. the value has come from the high-end service jobs and trickled down to those who service them. high-end jobs are now being lost due to the bubble or exported/devalued. the trickle-down service industry will be hurt at some point. all this means the US consumer will face declining real income growth, and perhaps severe contraction, in the years ahead. couple this with the coming bond collapse and i can't think of a better setup for a real estate wipeout.