Thursday, October 18, 2007

... trends ...

... possible effects of weaker dollar ...

penalized:
-foreign cars, computers and airplane makers
-foreign banks and real estate market
-american distributers of foreign goods
-(soon) american oil companies

advantaged:
-american banks and real estate market
-american manufacturers
-american high tech industry
-foreign distributers of american goods
-gold traders

short terms effects:
-increased solvancy of foreign debt
-real reduction of value of foreign and domestic debt
-effects of devaluation could possibly extend penalizing other stock markets (asia)
-conversion of asian treasury credit into purchases may create us shortages of liquidity

possible induced damages:
-us government troubles on funding national budget
-increase of crisis in foreign banking systems and stock markets
-defaults in foreign loans
-depreciation of foreign real assets
-increase of crysis in foreign manufacturers
-foreign political changes of regimes in most indebited countries
-increased hostility towards american financial system
-chain of devaluation extending to other markets (asia and europe)
-foreign unemployment

... history keeps repeating itself ...
... the beneficiary seems to be always wall street ...

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