Originally posted by Ripsnort
There is some truth within...the problem is this: When overseas investors start balking and pulling out of the stock market, it sends it spiraling down...
Which will drive the dollar down from it's inflated heights. Which means that our (US) products will be more competitive and foreign products less competitive - without tariffs and subsidies.
Jobs will be created and real economy benefit.
If the stock valuations return to the level where they belong - so what?
Also, withg lower dollar our companies will drop / are dropping much more for foreign investors then for us - punishing those stupid foreigners for helping drive our market and the dollar to unsustainable levels. With $$ falling, the US stocks will actually become much more attractive (cheaper) investment for foreignets again.
All those "retire at 40" hopes were stupid to start with. If the economy output is the same, that's what is going to be consumed - regardless how much the "market" is worth. The way it would have corrected itself would be when those retirees stopped buying and started cashing in their retiremet stocks - driving the market even lower then now.
Good thing it happened sooner - before those people quit their jobs and bought retirement houses, etc. It is much easier if your retirement savings evaporate when you still work then when you are already retired.
miko