Quote:
Originally Posted by Schneed10
But economically speaking, there's a very positive flipside to this. As our currency gets weaker, the currency of other nations gets stronger. Overseas investors tend to ramp up investment in our businesses when they know their Euros can buy more shares. This investment helps our companies raise cash, which is especially good for the financial companies in these post-subprime times. Our companies then put the cash to good use and generate returns, and before you know it our dollar will be strengthening again.
It's all a part of the business cycle.
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Lets face it, most companies/investors are single minded...make a buck as quick and as cheap as possible. It's really a raid more so than an investment, you know, the kinda stuff we do to third world countries (cheap labor and material). Airbus for example wants to
open plants in the states to reduce it's costs AND to win US Air Force contracts (not going to seeing how Boeing is sleeping with US government).
I suppose we are still relevant because we are the biggest market in the worlds but one has to wonders how big of a market we will be 20/30 years from now when more of our money is going towards paying interest. Truth of the matter is one should always look at long term prospects and as of right now the future looks bleak. If the US government was a corporation would you invest long term in it?
Lipsticks are in action once again.