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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (23012)	9/25/2007 2:08:49 AM
From: energyplay	Read Replies (2) \| Respond to of 217656

It will take a year or more for US manufacturing exports to ramp up. The Agricultural exports are already zooming. Many major US companies tend to have large percentages of overseas sales, and also about 80 to 90% of their debt in USD terms. This can make it possible to reduce the debt quickly, and the lower debt and better cash flow then means a better credit rating, again lowering the cost of debt service. This results in more free cash for capital investment and/or stock buybacks. Brazil is about halfway through this virtuous credit cycle, and it is starting for US multinationals. I expect much of the capital investment will go to the BRICs, and only a little to the US. There is still about an 18 month window for a nasty recession in the US related to housing problems.