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To: pfalk who wrote (67495)	4/6/2005 4:35:58 PM
From: Amy J	Read Replies (1) \| Respond to of 77400

pfalk, I doubt outsourcing has caused the current account deficit problem, I think it's more related to deficit: World Bank Warns U.S. to Cut Deficits story.news.yahoo.com "As a result, they are financing the enormous American current account deficit." Agreed it is bizarre how govt leaders have their heads in the sand. Too bad their jobs couldn't be outsourced. But I do agree with you there's a bigger problem. If you don't properly invest in new research, there's not too much to replace the outsourced stuff. Meanwhile, what are the top 10 F500? Companies that sell gas, mortgages, drugs, and insurance. And consumers can only afford Walmart: Rank Company 500 Revenues Rank 2004 ($ millions) 1 Exxon Mobil 2 25,330.0 2 Citigroup 8 17,046.0 3 General Electric 5 16,593.0 4 Bank of America Corp. 18 14,143.0 5 ChevronTexaco 6 13,328.0 6 Pfizer 24 11,361.0 7 American Intl. Group 9 11,050.0 8 Wal-Mart Stores 1 10,267.0 9 Altria Group 17 9,416.0 10 Johnson & Johnson 30 8,509.0 fortune.com Regards, Amy J

To: pfalk who wrote (67495)	4/7/2005 8:19:11 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Maybe. My own theory is similar, but slightly different. I think the cause of the oil spike was a couple things. Our deficits have definitely contributed to the falling dollar. In the Arab world, oil is denominated in dollars, which means when the dollar falls, they need higher prices to offset the lower value of the dollar. Then add to that the China and India consumption effect and you have higher oil prices. I think also the feeling that global oil supplies have reached Hubbert's peak may be contributing. However, all of this smells like a bubble to me. Oil may go higher over the next year or so, but I'd bet it will come crashing down soon after that. It's a commodity and I fully believe that the best cure for high oil prices is high oil prices, as the oil savvy seem to always say. When oil prices come down, stocks will soar. IMHO, the major root cause of low stock prices right now is oil. Everything else is a distant second.