US economy

korejdk said:

Not sure if most DR residents are following this, yet sooner or later this will affect us all...USD is tanking ( seems like the DR central bank doesn't care how low the USD is going - DOP follows suit ), gold & oil at record high prices - expect $ 4 at a pump near U soon...NY AG has a press conference tomorrow morning regarding predatory ( subprime ) lending...Citi has to break or go under, GMAC is about to announce 26 bil losses which could make GM fall.
Does anyone thinks that the DC cares about the US economy, US wage earner or the US dollar ? Feel free to show me recent history that shows they do.
I see blood on Wall St...

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korejdk said:

...If EUR is not above 1.50 by Dec 15 I am liable for a presidente to every member in Dec 28

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korejdk said:

haha yet all the real estate prices are listed in USD...Argentina had it's currency pegged to the USD 'till the s*&t hit the fan...don't get me wrong, I adore the DR, I go there every month ( if Marco would have bagels I'd go twice a month ) and I will move there ASAP, yet since CNN, CNBC etc do not feed you anything real ....capisci ?

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Chris said:

DOW up 60 Points at open !!

I'm now a scared bear as I don't understand this market and by the looks of things, no-one else does! Someone .. WTF?

What does this have to do with the DR? The DR will soon feel the effects of whatever is happening.

And now I'm even worried about the poster's name. Korej dk? Like David Koresh?

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El_Uruguayo said:

But you know what they say, when the US sneezes the rest of the world catches a cold, we'll see how it pans out.

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Will an American recession drag the rest of the world down with it? The economies of Europe and Japan rebounded strongly in the third quarter, but look likely to slow down. Although both should be able to keep chugging along, neither is likely to set any great pace. Strengthening currencies will hurt exporters in both places. Europe's own housing hotspots are cooling, and some of its banks have been sideswiped by America's subprime ills.

The best hope that global growth can stay strong lies instead with emerging economies. A decade ago, the thought that so much depended on these crisis-prone places would have been terrifying. Yet thanks largely to economic reforms, their annual growth rate has surged to around 7%. This year they will contribute half of the globe's GDP growth, measured at market exchange rates, over three times as much as America. In the past, emerging economies have often needed bailing out by the rich world. This time they could be the rescuers.

Of course, a recession in America would reduce emerging economies' exports, but they are less vulnerable than they used to be. America's importance as an engine of global growth has been exaggerated. Since 2000 its share of world imports has dropped from 19% to 14%. Its vast current-account deficit has started to shrink, meaning that America is no longer pulling along the rest of the world. Yet growth in emerging economies has quickened, partly thanks to demand at home. In the first half of this year the increase in consumer spending (in actual dollar terms) in China and India added more to global GDP growth than that in America.

Most emerging economies are in healthier shape than ever (see article). They are no longer financially dependent on the rest of the world, but have large foreign-exchange reserves?no less than three-quarters of the global total. Though there are some notable exceptions, most of them have small budget deficits (another change from the past), so they can boost spending to offset weaker exports if need be.

This does not mean emerging economies will grow fast enough to make up for the whole of a fall in America's output. Most of them will slow a bit next year: for instance, China's growth rate may dip to ?only? 10%. So global growth will ease?which, after five years at an average of almost 5%, close to its fastest pace ever, it needs to do. But thanks to the vigour of the new titans, it will stay above its 30-year average of 3.5%.

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korejdk said:

Not sure if most DR residents are following this, yet sooner or later this will affect us all...USD is tanking ( seems like the DR central bank doesn't care how low the USD is going - DOP follows suit ), gold & oil at record high prices - expect $ 4 at a pump near U soon...NY AG has a press conference tomorrow morning regarding predatory ( subprime ) lending...Citi has to break or go under, GMAC is about to announce 26 bil losses which could make GM fall.
Does anyone thinks that the DC cares about the US economy, US wage earner or the US dollar ? Feel free to show me recent history that shows they do.
I see blood on Wall St...

Click to expand...