Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (19521)	12/25/2004 12:24:09 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

Canadian Dollar Falls for 4th Straight Week on Slower Economy Dec. 25 (Bloomberg) -- Canada's dollar fell for the fourth straight week on speculation the central bank will refrain from raising its target interest rate in coming months because economic growth remains slow. The dollar has declined the most of the 16 major currencies in the past month, down 4.3 percent against the U.S. dollar. The Bank of Canada left its target interest rate unchanged Dec. 7 and abandoned a pledge to raise interest rates ``over time.'' A report this week showed the economy stagnated in October, the first time since April 2003 the economy hasn't grown for two straight months. ``It's clear that people have responded to the data weakening and decreased Bank of Canada hawkishness,'' said Todd Elmer, a foreign exchange strategist in New York at Barclays Capital Inc., the seventh-biggest currency trader in a Euromoney magazine poll. ``People started to build positions in U.S. dollars'' against the Canadian dollar in the past month, he said. bloomberg.com

To: RealMuLan who wrote (19521)	12/25/2004 3:44:07 PM
From: Kailash	Respond to of 116555

Economists at Merrill Lynch said the housing boom triggered one of the largest savings drawdowns in history this year. They estimate that a $70 billion drop in savings flow in the third quarter alone added more than two percentage points to gross domestic product growth during those three months. GDP, taken as a measure of the health of the economy, is in effect a measure of its sickness.

To: RealMuLan who wrote (19521)	12/26/2004 11:47:45 AM
From: John Vosilla	Respond to of 116555

Thank you. Those two truly classic quotes sum up my feelings on the situation. Can captital investment and new innovations from the cash rich corporate side offset some of the negative effects of the consumer slowdown and housing bust? <"The question in my mind is not whether this is going to reverse at some point, but only whether it will unravel in 2005 or 2006," said Nouriel Roubini, economics professor at New York University's Stern Business School. "A saving-short, asset-dependent U.S. economy needs higher real interest rates to temper excess consumption," Morgan Stanley's head global economist Stephen Roach wrote last week. "To the extent that a further decline in the dollar sparks such an adjustment, the U.S. will have taken an important step on the road to global rebalancing.">