The markets are getting curiouser and curiouser..... As oil soars and the dollar falls...the Dow keeps rising? Go figure.
Probably just a setup for the annual Spring Sucker Flush on Wall Street...?
Still, some of the current econo-talk is interesting.... For example, the weak dollar....
The weak dollar is supposed to cause foreigners to BUY AMERICAN.
After all, a weak dollar means that American Products are CHEAPER for foreigners.
But the BIG QUESTION is: WHAT AMERICAN GOODS ARE THEY SUPPOSED TO BUY.?
THE US JUST DOESN'T MAKE MUCH THAT PEOPLE WANT TO BUY THESE DAYS.....?
China is the global factory floor now, not the US.
And the American advantage in services and the "knowledge industries" is dissipating fast. Knowledge work is going to India, or China or even Russia......now.
SO, WHAT DO YOU BUY IF YOU WANT TO "BUY AMERICAN" WITH NEW "CHEAP DOLLAR" IN THIS POST-INDUSTRIAL AMERICAN ECONOMY?
ANSWER: ......LAND!
AMERICAN REAL ESTATE IS BEING BOUGHT BY FOREIGNERS IN RECORD AMOUNTS.
Curiously, this could prolong the Real Estate Bubble even longer......despite Greenspan's rate hikes.......
YOU MIGHT SAY THAT: DEEDS AND TITLES ARE AMERICA'S GREATEST "EXPORT" NOW!
After all, what wasn't bolted down has moved to China over the last few years.
Now the Chinese are buying the American land that was left behind when the factories moved out. ....And also second homes, seaside condos, apartment buildings, shopping centers, etc. etc.......
Is this a suckers market; a sign of the top in the Real Estate Bubble? ....Very Probably, yes....
But, the abundant GREENSPAN DOLLARS have to be spent on something!
And AMERICAN REAL ESTATE could be all that's left......in a US economy that has been hollowed out by bubbles, consumption and debt!
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