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

To: TobagoJack who wrote (111388)	5/9/2010 9:54:51 AM
From: Haim R. Branisteanu	Read Replies (3) \| Respond to of 116555

I only hope that they will convict more than few so called investment banks and force them to pay out substantial damages. The present situation if it will be lasting will increase the US trade and budget deficit by at least $2 to $4 billion a month and job losses will resume. For each $1 billion a month, in trade deficit, around 10,000 to 20,000 jobs will be lost and the US budget deficit will grow around 300 million per month In summary low exchange rate of the EUR v USD is bad for the US economy After the speculative flow of funds will dissipate this will be very evident with a lag of around 60 days. Last year trade deficit with the EU was around $60 billion average EUR/USD was around 1.4. In 2005 trough 2007 trade deficit averaged over 120 billion a year and the exchange rate was at present level. Assuming $110K to $130K GDP per employee in the US, it is easy to extrapolate how many jobs will be lost and with them lost income tax revenue, if the trade deficit with the EU will rise to $120 billion a year.

To: TobagoJack who wrote (111388)	5/9/2010 12:52:16 PM
From: Canuck Dave	Read Replies (1) \| Respond to of 116555

I'm sharpening my axe, just in case. Better to be with the mob, than have it chasing you. Ahhh... good plan. You were wondering about exit strategies. Well, one can run away from danger I suppose, but what if one becomes the danger others are afraid of? "I'd like to jon the reign of Terror, please. I have my resume right here. Note the four types of blood on my pitchfork. And incidentally, didn't you used to work for HSBC?" CD