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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: andiron who wrote (81097)	7/7/2008 7:38:12 AM
From: elmatador	Respond to of 116555

Quite a few dreaming of a 'flight for quality' for us to save their derriere. It is not going to happen this time. This time around anyone wanting to eat has to work for it. Like anyone else: exporting goods and services to pay for goods and services. Remember carry trading was going to be taken and emerging markets would sink? China was going to slow down and bring down the rest of the world. Didn't happen...

To: andiron who wrote (81097)	7/7/2008 8:06:33 AM
From: elmatador	Read Replies (1) \| Respond to of 116555

Pray for emerging markets! Big U.S. industrial companies with global reach—like Caterpillar, United Technologies (UTX), 3M (MMM), General Electric (GE), and Honeywell (HON)—start reporting second-quarter earnings in mid-July. Rockwell and OshKosh are tiny compared with those giants, but their profit warnings amount to a troubling omen. Costs of energy, raw materials, and shipping had already skyrocketed, and now "evidence is starting to unfold of slower international markets," says Longbow Research analyst Eli Lustgarten. If demand weakens, it becomes harder to raise prices to cover higher costs. Plus, while the weak U.S. dollar has boosted overseas profits in recent quarters, there is evidence that direct currency benefit could disappear by the end of the year as the dollar stabilizes, Lustgarten says. businessweek.com