Bulls & Bears

[freeandfun1]

Do any of you watch Bulls and Bears on FOX? I just love all of the FOX Saturday morning investing shows. They are all good.

Now, I know the good and the bad of a weak dollar. But I have a major question that is confusing me, so why don't you financial wiz kids give me a lesson.

I keep hearing from the dims how the dollar is at a 9 year low and that is BAD for the USA. At the same time, I keep hearing the dims talk about the wonder years of the Clinton admin. Well, 9 years ago would be 1995 and that would be when the economic run began that the dims love to refer back to. So if a weak dollar is SO bad, how did we have the run under Clinton?

I know that most of this is politics, but even some GOP folks are worried about the weak dollar. Being an exporter, a weak dollar is extremely good for my business. I am seeing business grow for me like I haven't seen it growing since around 1994 - 1996. So what gives??

 

[eric]

Free,

There is really no simple answer to the question. It's long term effects, both good and bad, far too numerous to list. I do think a major fear is a sell-off of US securities by foreign investors and a spike in US interest rates.

Not to mention reduced overseas purchasing power, and the effect on foreign credit.

 

[freeandfun1]

Free,

There is really no simple answer to the question. It's long term effects, both good and bad, far too numerous to list. I do think a major fear is a sell-off of US securities by foreign investors and a spike in US interest rates.

Not to mention reduced overseas purchasing power, and the effect on foreign credit.

I understand all that, I was mostly pointing out that this is another one of those "it was good under Clinton, bad under Bush scenarios". I myself am not that worried about the deficit. Perhaps I should be, but I remember the same things being said in the 80's that are being said now. So it is kinda like the "boy who cried wolf". Until somebody can logically explain to me why it was okay for the dem controlled houses of the 80's to balloon deficits, but it isn't now, then I will worry.

I bet I could pull old newsreel commentaries from the 80's on the deficit, play them for you and you would think you were listening to the news today. I'm just getting sick of hearing it.

I believe in the good ole US of A and I know we will rebound.

 

[eric]

That makes two of us. I could not agree with you more !!

 

[wade]

Free,

There is really no simple answer to the question. It's long term effects, both good and bad, far too numerous to list. I do think a major fear is a sell-off of US securities by foreign investors and a spike in US interest rates.

Not to mention reduced overseas purchasing power, and the effect on foreign credit.

The fear is that China and others will stop funding the USA's cheap credit, interest rates will spike, US consumer purchasing will dry up, the service economy will shrink rapidly, land/property values will fall, property owners will no longer have sufficient collateral to cover their loans, and banks will forclose.