Posted on 11/26/2009 5:12:04 PM PST by Steelfish
bump
Despite much of talk about markets “decoupling” from US or “change of leadership,” it’s just baseless talk. US is still leading in direction of the markets, though the velocity may differ with some other markets, i.e., some markets may be “hotter” over some period of time, and develop their own bubbles, but even when it’s regional bubbles, they seldom affect the rest of the world.
The rest of the world, including, in particular, China (which is developing financial and real estate bubbles of her own) are still too dependent on US economy and financial services that are mostly following US.
Which, of course, is no reason to gloat or be particularly happy about, but next time you hear about “decoupling” or some such, just smile and walk away.
I’d help, but all I have is a flat-bed scanner.....
Part of that is inertia, but even bigger part is that world doesn't have another leader ready or willing to step in to replace USA when she's floundering. For a while, there was a notion of Japan, Inc. potentially fitting that role, but everyone knows how that worked out. Then other smaller "tigers" as a group were looking hot, until 1998 Asian and Russian financial and currency meltdown.
No one really wants the role. EU likes to snipe from the sidelines and act superior, but they know where they would wind up without US leadership, and despite the "U" they are hardly ever united on anything, and viciously compete against each other - that does not a leadership make. Most of Europe has been hit harder than US by financial crisis.
China might in the not-so-near future assume the role of equal partner, but besides their own bubbles and internal issues (economy in most of the country is not the same we see in Shanghai, Shenzhen etc.) their own economy is just too dependent on US. Their current leadership is much smarter than our current leadership so they are gaining, but in economic terms they are worried more about us than we are. BTW, few realize that China had their own stimulus program at the end of last year, which relative to size of respective GDPs is four times larger than ours. But they are applying it much better, toward real infrastructure and some of that stimulus has been not in spending but in the form of targeted tax reductions.
No doubt that we are being subjected to the deliberate internal damage almost daily. It helps our friendly competitors and enemies alike, but, in terms of markets, there is simply no one at this time who could or would want to step in to take over leadership role. And everyone likes it that way, for now. How long it's going to last depends on how soon we can derail Obama-Pelosi-Clinton-Reid axis agenda.
Dubai is the modern day Tower of Bable
and I google it...
Is Dubai the Modern Tower of Babel?
http://www.associatedcontent.com/article/1492118/is_dubai_the_modern_tower_of_babel.html?cat=9
Printed out the entire article for my wife. She has a couple of brothers back in India who nearly were taken in by an offer to work in Dubai; thank God they didn’t go.
Quit giving away my secrets.
It’s a short day, I don’t think there’s enough time to get into the green... but the Dow’s losses will probably be <1% and more manageable than its overseas counterparts.
Your point remains, though. This market is impervious to fundamentals. Something else entirely is controlling it.
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