tag:blogger.com,1999:blog-1258979445050968882.post6686921495416351133..comments2023-11-26T06:55:42.401-05:00Comments on [ The Financial Ninja ]: Down and Out for the Long Term: This Time it Really is DifferentBen Bittrolffhttp://www.blogger.com/profile/12465978905157927856noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1258979445050968882.post-41853256007897730382009-06-08T11:48:56.521-04:002009-06-08T11:48:56.521-04:00Ben,
Great article. As a U.S. citizen who reads b...Ben,<br /><br />Great article. As a U.S. citizen who reads both the WSJ and FT daily, it's interesting to see the different perspectives.<br /><br />I was curious about one part of the article and am interested in your opinion. The author suggests that the Euro could appreciate signficantly against the dollar. (Since the top of the stock market, the dollar has beaten the Euro, especially since summer of 2008 when the economic crisis began in full swing.) With the U.S. trade deficit narrowing, as this author suggests, wouldn't this have a positive effect on the dollar? Moreoever, based on reports from Stratfor, Mauldin, and others, Europe is already in deeper economic doldrums than the U.S., and they aren't as far along in their housing crisis. Their banks are both highly leveraged and more closely tied to corporate lending. (Not to mention the fact that they're far more socialistic.) Their demographics are clearly in worse shape as well, with an older and aging population. In all, this spells great trouble for Europe going forward. Could this therefore point to a weakening Euro?<br /><br />On the flip side, due to the fractured nature of the European banking system, they can't use quantitative easing to slow down deflation. Deflation I assume would bolster the Euro. So perhaps Europe experiences true deflation (as already is occurring in places) whereas the U.S. tries to stave it off with money printing.<br /><br />Thoughts?Mista Bhttps://www.blogger.com/profile/04435945306115733957noreply@blogger.comtag:blogger.com,1999:blog-1258979445050968882.post-36194112344776582922009-06-08T10:21:22.372-04:002009-06-08T10:21:22.372-04:00@ fajensen and Tord:
your earlier replies are well...@ fajensen and Tord:<br />your earlier replies are well taken.<br /><br />Thanks<br />http://benbittrolff.blogspot.com/2009/06/eastern-europe-latvia-causes-first.htmlkhalidnoreply@blogger.com