Bondad,
Sterling Newberry and
Jerome a Paris have been talking about the precarious position we are in with our large trade and budget deficits. This in combination with Americans pulling way too much money out of the rising equity in theirs homes, due to too low an interest rate, may be setting us up for a very hard landing. I don't have any hard evidence for this, but I feel like the markets are very nervous and are ready to bolt at the first sign of bad news. Well, we seem to be getting it. Two articles at
prudent bear caught my eye today.
U.S. Stock-Index Futures Drop; IBM, Sun Shares Fall in Europe and
Dollar Drops on Speculation Foreign Demand for U.S. Assets Fell. Could we get a double whammy of the stock market taking a bit hit and at the same time foreign investors walking away from the US investing table? It looks like it to me, although I have no qualifications to speak of in economics. I am glad I paid attention to the three economic amigos and have protected my investments as best I could. And a very public thank you to each of you for the excellent contributions you have made here.