rsinvestor

Things Could Be Worse...

Global trade is very temporarily frozen because of the credit contraction. Once the credit starts flowing, businesses in all countries will march forth in true capitalist form to buy and sell based on their own best interest.

During the Great Depression, protectionism was mandated from the highest levels of government by tariffs to protect local producers. We have nothing like that now. In fact, major economies are coordinating efforts to avoid just that scenario. Give us credit for learning from some of the mistakes of the past.

This is a global contraction, nothing more. Just today the US produced it's first negative GDP figure of this cycle, yet the media have been screaming "recession" for over a year now. China is still growing at almost 10%, Brazil at 6%. The world ecomomies are slowing, but not dissappearing. Bubbles burst, but life goes on. The world still needs goods and services, and the US is still best prepared to provide them.

Dan