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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (54375)	2/21/2006 11:28:19 AM
From: GST	Read Replies (1) \| Respond to of 110194

<India and China are turning out more engineers and scientists than we are. Demand for jobs is high. More graduates than jobs.> To the extent that there is an emerging global market for talent, your location is less and less of an issue for the employer. For the employee the issue is more complex. If a person lives where the overall level of wages is low (India), then it is more likely that the cost of living is low. In that situation (which is common in places like India and China), then it is likely that the person will have a higher income in China or India, and sooner rather than later. If I am Indian, would I be financially (and socially) better off making 100k in India or 150k in the US? Chances are, the person in India would have more purchasing power, and hence already has a higher income (measured as what money you have and what that money can buy).

To: mishedlo who wrote (54375)	2/21/2006 2:01:48 PM
From: shades	Respond to of 110194

"The upshot: The 5.6% rise in real disposable income we expect over the four quarters of 2006 would be the strongest such gain since 1998, and would finance healthy gains in consumer spending and a rise in the personal saving rate from its current below-zero level to 1½%. Despite such prospective gains, many are concerned that the combination of rising debt and debt service and sinking gains in housing wealth and home equity extraction will more than offset the growing consumer wherewithal. I disagree. First, careful analysis of consumer debt service and financial obligations ratios reveals a healthier American consumer than commonly thought; appropriately-adjusted measures are actually well below their peaks of three years ago. That throws some cold water on a slowdown story based on presumed household balance-sheet fragility " morganstanley.com