87 crash
- Thread starter capitalMan
- Start date
I dunno, but I think the biggest economic impact the internet had on this economy was getting YHOO to 400/share
In contrast one could easily argue that the internet has been one of the driving forces for deflation and even decreasing employment via higher productivity. And until we have something worthwhile for the Chinese to import from us (besides raw goods and treasuries) that they can't copy or duplicate at much lower cost, don't hold your breath waiting for their growth to impact our economy. Those middle class consumers in China and India will be just like ours -- except they won't need to be buying Labelled in USA goods when they can buy from their own backyard. China's only contribution to our economy will be as the driver for finally getting capital back into the raw materials sector, something that's been long neglected during the 90's paper boom. You might find better equity markets abroad to invest in. But I would agree that our stock markets would more likely suffer prolonged stagnation rather than a single day crash.
JMO -- I just make this stuff up as I go along.
Quote from illiquid:
I dunno, but I think the biggest economic impact the internet had on this economy was getting YHOO to 400/share
And until we have something worthwhile for the Chinese to import from us (besides raw goods and treasuries) that they can't copy or duplicate at much lower cost, don't hold your breath waiting for their growth to impact our economy. Those middle class consumers in China and India will be just like ours -- except they won't need to be buying Labelled in USA goods when they can buy from their own backyard. China's only contribution to our economy will be as the driver for finally getting capital back into the raw materials sector, something that's been long neglected during the 90's paper boom. You might find better equity markets abroad to invest in. But I would agree that our stock markets would more likely suffer prolonged stagnation rather than a single day crash.
JMO -- I just make this stuff up as I go along.
But we're not talking about the impact these things have on US employment or the US economy more generally; the discussion is on their impact on the stock market.
US-based corporations will benefit mightily from internet-based productivity gains and from the fast-growing consumer classes in China and India (and Brazil) over the next 10 years. As corporate profits go, so goes the market.
Having said this, I readily concur that this rising tide will not raise all American boats. We are becoming a bi-modal society with a privileged minority who will do better and better and the majority who will be stuck in low-value-add service jobs. From a socio-economic perspective we will look more like Brazil as they look more like us.
Welcome to the brave new world of globalization.
I absolutely agree. It is ironic that most of the people most likely to be screwed by these changes are passionate supporters of this administration. Talk about not understanding where you own interests lie. I see the wage slaves around here, barely getting by, and they've got the bumper stickers... "I Support George Bush 100%". Too bad it doesn't cut the other way.
m
I don't know. I hold it as a possibility that Bush et al. realize the consequences of what's happening and will try to protect their revenue source (or create new sources).
Quote from mind:
pretty clear
that this is a very exciting time for investment and trading.
stock extreme
interest rate extreme
vola extreme
dollar extreme
yen extreme
us fighting
china booming
euroland arguing and uniting
russia stranging
media proclaiming new constant growth
WHAT IS VOLA??
AND WHAT IS RUSSIA STRANGING??
Great thread!!!
All the best
pretty clear
that this is a very exciting time for investment and trading.
stock extreme
interest rate extreme
vola extreme
dollar extreme
yen extreme
us fighting
china booming
euroland arguing and uniting
russia stranging
media proclaiming new constant growth
WHAT IS VOLA??
AND WHAT IS RUSSIA STRANGING??
Great thread!!!
All the best
There is always plunder. It kept the Roman Empire afloat for a couple hundred years.
m