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To: John Hunt who wrote (33717)5/12/1999 1:29:00 PM
From: donald martin  Respond to of 116764
 
<<I think the trade deficit will unwind when the stock market finally crashes...>>

If a foreign entity has US$ revenue and doesn't buy an American product but instead buys US stocks, how does that get counted in the trade deficit numbers? Maybe a stock market crash fixes the trade deficit not by sloshing around less money to spend on imported goods, but by slashing the wealth of foreigners who bought US equities instead of US goods and services.