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

To: carranza2 who wrote (27089)	12/30/2007 10:21:39 AM
From: KyrosL	Respond to of 219928

I agree with you that the consumer will cut back a lot during the coming recession. But I think this is good for the long term health of the US economy. I view the credit crisis the same way. I hope it will help restore credit sanity, eliminate the trade deficits, and raise the US savings rate back to its customary high single digit percentage. It takes prolonged pain to change the mindset of J6P, but it can be done. Unlike past recessions, this time most consumer goods that will bear the brunt of the recession are made abroad, so even though some retail jobs will be affected, not a lot of manufacturing jobs will be. In fact, the recession and accompanying low interest rates will help keep the dollar down for a number of years, and revive some of the manufacturing lost to other countries. So, it is not just agriculture that will see much better times in America -- listen to WB. I think the US will emerge from the coming recession in surprisingly good shape, especially if the next administration implements a serious energy policy with conservation as its main feature, and promptly ends the Iraq adventure. As far as stocks, I doubt we get a deep fall. I see all those wealth funds chomping at the bit to invest at the slightest dip, and their money, fueled by oil and trade surpluses, keeps pilling on.