Rude: You're so wrong it's laughable....no increased capital investment in the US this past year?
If that was a fact, I would be in serious financial trouble. Do you really believe that all capital investment in US comes though your hands? Or that you would have recognsed it if it bit yoy on the ass?
I am trying not to make comment's on people's intelligence but you are making it exeedingly hard on me.
I mean, you can lie all you want and offend people, and make wild unexplained assertions about global phenomena in terms of your personal experience but could you at least come up with a BS that takes more than a few seconds on the web to dispell? Please? Just to make it more of a challenge?
Care to check this chart of
commercial and industrial loans at commercial banks at the Federal Reserve Bank of St. Louis site? This statistic went negative in mid-2001, and it has yet to recover. It fell throughout the first half of 2002 to a negative 8% or thereabouts, then "recovered" to negative 5%, briefly, in mid-2003. Since then, it has fallen back to negative 7%?
As you can see, bank credit is up but the borrowing by bisinesses is down. So
people are borrowing more to consume but
businesses are not borrowing more to invest.
If there any investment into capital going on, the economicst know the source very well - it's the foreign savings that come in as the capital account surplus. Even that is down recently and cannot compansate for the increasing current account deficit - so the dollar has been falling over the last few monthe.
Sabre: but an 8.2 percent growth in GDP for the third quarter, the third straight quarter of solid growth, is a good general indicator of economic health Ever heard of the business cycle? Or do you have reasons to believe that we will not have a recession that would wipe out part of the gains? I presume by solid you ment "sustainable", right?
Was the growth of the 1990s solid in your opinion?
I believe Greenspan sh#t his pants when he saw that the "growth" got away from his target of 3-4% - because it increases the chance of the required monetary tightening and ensuing recession before the 2004 elections.
miko