Long term prospects just fine
Sunday, October 12, 2008 at 06:55PM In today's New York Times, Thomas Friedman provides the best (and most understandable) explanation for the market chaos that we've been witnessing
His central premise (which others like Warren Buffet have said as well) is that the global economy had been propped up by these highly leveraged and insanely unstable financial products, and what we're seeing is the stock market repricing every asset on the planet in one fell swoop.
It doesn't mean the fundamentals of the U.S. economy are weak, however. Quite the opposite: productivity is at an all time high, as Americans remain the hardest working and most industrious people on the planet. But it does mean that trillions of dollars of leveraged wealth have been ripped out of the economy in a matter of weeks, and it's surely to cause severe pain in the short term. How long and how deep the pain will go is anyone's guess, but it shouldn't dim the long term prospects for the country.
As Warren Buffet said, “I do know that the American economy, over a period of time, will do very well, and people who own a piece of it will do well."
Reader Comments (2)
Good post. It's clear the market oversold itself. I do think that regardless of who wins, the next big source of jobs and growth is in alternative energy. We can lead the world in reducing dependence on foreign oil and natural gas.
I won't continue on a standard line that's usually discounted as "liberal". Try this.
1) If we can find a way to run our M-1 Main Battle Tanks on a fuel cell or hybrid engine, then we can apply the technology across all military vehicles. We can positively impact the "logistical tail" needed in war and military actions. We will be more manueverable, and be able to pursue and close on an enemy faster. Americans can bring that technology forward, and we can build those new engines.
2) If we export this technology, we can loosen the grip that Russia has over Europe. Russia is the leading exporter of natural gas to Europe. If the Euros can reduce that dependence by 10-15% in 3-5 years, then Putin will have no choice but to rethink this dreams of a new Soviet Union.
3) China. We would have a strategic advantage over the Chinese army. That can't be bad. Granted if 1) and 2) come true, then world oil prices will drop. But the logistical problems of moving and storing fuel will still exist. They will be at a disadvantage if they start to contemplate military hijinks.
And with that, the liberal speaketh.
<h1>replica designer bags</h1> Affordable bags
<h1>replica designer handbags</h1> Come ah
<h1>air max 2012</h1> Favorites
<h1>nike shox turbo</h1> Discounts and more
<h1>men puma shoes</h1> Online Sales
<h1>air max 90</h1> Wholesale sales
<h1>wholesale puma shoes</h1> Wholesale sales
<h1>puma shoes sale</h1> Look comfortable
<h1>timberland mens boots</h1> Buy comfortable
<h1>gucci women shoes</h1> You are wrong?
<h1>louis vuitton outlet</h1> There must you like