JCC

Perhaps There Are Unseen Green Shoots

On Jul 19 08:39 AM Quaker wrote:
""I believe that we're in a systemic change in currency and trade regimes worldwide, similar to that which happened in the late 20's in Germany and in 1870's in London and Amsterdam. The changes we're going through are more historical than economic. The reason we got into trouble was the China, Saudi trade caused an excess of dollars to enter the market and and excess of IOU's to be issued. This caused interest rates to get absurdly low and destroyed worldwide equity.""

Well Quaker - Those who read Kevin Phillips book "Bad Money" will at least partially agree with you. Look at the history of Europe and you will see a similarity as they progressed from a manufacturing based economy to a financial economy. This of course appears to be what the USA is going through.

Look at the charts of China, and you will see that they are the only ones that have been growing consistently since November 2008, and of course China is a manufacturing economy. I see green shoots in Asia.

By the way, Goldman Sachs has also been growing consistantly since November 2008, and now they appear ready to explode to the upside. I see fast growing trees in financial stocks.

Looking at history, the change in economic leadership should be gradual and painful. Asia needs us as a marketplace!

In the meantime, be careful with your investments. Specific financial stocks might be a great investment. Multinational companies are better suited to grow in the coming world economies. Resources will again be stretched, and provide for good investments. Technology leaders also will provide opportunity.

Hansen - This is a good article, and it's nice to see something factual and reasonable among all of the ridiculous opinions. Good work!!