Perspectives, part 1

OK, you asked for it. I think it’s a great time to have cash and credit because there are some serious bargains to be had in Real Estate. I think the rest of the world will need to use their dollars, which are too abundant and shrinking in value, to buy something besides $100/barrel oil and Boeing jets and that something will be US corporations and real estate. The very banks that are now suffering at the hands of domestic money managers look pretty good to foreign investors at their current levels. Fixed assets like US real estate are also a decent safehaven for dollars declining in value. Arab, European, Asian and even Canadian investors will all become larger stake holders in this great American experiment. The Global Capitalism that we have historically gone to war to promote and enable will serve to difuse ownership of America further, thereby lowering the risk of terrorism on our soil as those who have a stake in our country will not want to destroy it.

Posted By Tom Larson, Woodbury, MN : November 5, 2007 12:39 pm

Yes, as usual the pendulum has swung and we are facing a tough period. Remember, the falling dollar makes our products (and we have lots of products) very attractive to the rest of the world. Our account deficit will rise further as we slowly ramp up production, and we will, but over time the deficit will fall. Did anyone really think we could continue to purchase goods and services throughout the world with such a large trade deficit and maintain the value of the dollar? Math is still math and this is simply the correction taking place.

Posted By Brian, Scottsdale, AZ : November 5, 2007 12:37 pm