Quote:
Originally Posted by halfpint
Yep I would sell the lot off as quick as possible, so where does this all lead to if the $ loses more value that makes imports more expensive and exports dont make as much as before, so how does the USA reverse the falling $ trend.this is really bad for the USA and a lot of other countries.
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And that is the challenge - first to stop the downwards spiral and then hopefully start an upwards trend. It's an enormous task and can't just rely on govt policies alone - tho whatever govt ends up managing the US for the next, probably at least 10 years, seriously needs to devote time to the economy.
Right now, it's probably damage-limitation time and likely to continue next year. Reversal of economic downturns are not going to happen overnight and there probably has to be actual evidence of postive action to give investors, both domestic and international, confidence to inject funds.
Only my
, but smell the withdrawal of investment started a good few years ago... and has been slowly increasing. The "bankers" (hedge funds blah) who traditionally have been injecting short-term funding are slowly closing their doors - and can only see that increasing - bad news.
OK.. the home market is crappy, but likely to get worse and that has it's own ripple effect. But... more ripples can come from other countries - eg.. smell the overpriced UK home market is going to take a hit next - and the UK was a traditionally high investor in US markets - so can see a ripple from there. It's a vicious cycle and going to be seriously hard to stop.
I can't say what a possible solution may be - tho in simplied terms, it would probably involve substantially cutting imports and at least attempting to cut the level of oil imports (this has a massive deficit effect on the trading accout). Outsourcing may be fine, but passes out "wealth creation" to other countries - US industry "needs" to produce marketable product for export (as well as fufilling a home market). This is a long story - and will probably last many years to recover (if that is possible) what was the recent status of the dollar.