From, Bosco D'Mello bospam at canada.com
Tue Mar 25 20:47:20 PDT 2008
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http://www.time.com/time/magazine/article/0,9171,1725094,00.html
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This article purports to educate what Goans saddled with stacks of greenbacks
ought to do with their USDees!! 'Goans in pain' could possibly do well by being
astute 'Goans at the Garage Sale".
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The USD is causing a lot of pain, the world over!!
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Mario responds:
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The article above discusses the likely purchase of US assets by foreign holders
of US dollars. The US has always welcomed such purchases by foreigners, unlike
the current hand-wringing going on by Goans about foreigners buying assets in
Goa.
>
The link below is to another article on the US economy by respected financial
journalist, Robert J. Samuelson, that should be educational for Goans in the
middle-east with ties to the falling US dollar, because it adds some FACTS and
much needed context and perspective to what is happening:
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http://www.washingtonpost.com/wp-dyn/content/article/2008/03/25/AR2008032502298.html?hpid=opinionsbox1
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An excerpt:
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Regarding the economy, it's hard not to notice this stark contrast: The "real
economy" of spending, production and jobs -- though weakening -- is hardly in a
state of collapse, but much of today's semi-hysterical commentary suggests that
it is. Financial markets for stocks and bonds are described as being "in
turmoil." People talk about a recession as if it were the second coming of
Genghis Khan. Some whisper the dreaded word "depression." Meanwhile, Americans
are expected to buy about 15 million vehicles in 2008; though down from 16.5
million in 2006, that's still a lot.
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There's a disconnect between what people see around them and what they're told
is happening. The first is upsetting (rising gas prices, falling home prices,
fewer jobs) but reflects the normal reverses of a $14 trillion economy. The
second ("panic," "financial meltdown") suggests the onset of something
catastrophic and totally outside the experience of ordinary people. The
economy, the New York Times said last week, may be on "the brink of the worst
recession in a generation" -- an ominous warning.
>
Perhaps, but so far the concrete evidence is scant. A recession is a noticeable
period of declining output. Since World War II, there have been 10. On average,
they've lasted 10 months, involved a peak monthly unemployment rate of 7.6
percent and resulted in a decline in economic output (gross domestic product)
of 1.8 percent, reports Mark Zandi of Moody's Economy.com. If the two worst
recessions (those of 1981-82 and 1973-75, with peak unemployment of 10.8
percent and 9 percent) are excluded, the average peak jobless rate is about 7
percent.
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[end of excerpt]
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