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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (352867)	1/8/2008 8:40:09 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 436258

Asset Price Bubble: Writing for the Financial Times, Stephen Roach says that the U.S.’s asset prices must come down to fix global imbalances. “America’s current account deficit is due more to bubbles in asset prices than to a misaligned dollar. A resolution will require more of a correction in asset prices than a further depreciation of the dollar. At the core of the problem is one of the most insidious characteristics of an asset-dependent economy — a chronic shortfall in domestic saving. With America’s net national saving averaging a mere 1.4% of national income over the past five years, the U.S. has had to import surplus saving from abroad to keep growing. That means it must run massive current account and trade deficits to attract the foreign capital.”