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


To: Dan3 who wrote (104915)11/26/2009 11:41:40 AM
From: The Reaper  Respond to of 116555
 
It will and it has since March. However there comes a point where it blows up. Just make sure that you're off the train when it happens.



To: Dan3 who wrote (104915)11/26/2009 5:45:44 PM
From: John Metcalf  Read Replies (1) | Respond to of 116555
 
"Won't a falling dollar tend to increase dollar denominated stock prices?" A company with primary earnings in USD will own a less valuable future cash flow, and the value of its assets will lessen. GM, for example, owns much of Lansing, MI, and equipment tooled to make cars that are not selling, and discounted loans made by GMAC. Add in expectations for higher interest costs and increased taxes and adverse regulatory climate -- not a pretty picture.

US-based companies with strong foreign earnings have been faring better.