The Rising Yen is Sinking Japan

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Japan- Here's a country that FAILED in destroying it's own currency. The US will not make the same mistakes as Japan did.
 
There are some similarities to the Japan economic bubble that hit in '93 and our own. The overinflated Japanese land market bubble popped which set up a reaction in the stock market.

Here's where we differ: the rising value of the yen caused an enormous issue with Japanese exports. They had to intervene by buying up a lot of dollars just to keep their exports competitive. At the same time, the US IT/computer markets were making huge inroads around the world.

The honest truth of the matter in the US is that most of our markets are internal to NAFTA, not external like Japan. They are highly sensitive to prices overseas. We're really not. Yes, oil is a problem, but let's not forget that we also are an oil producer (and also a major consumer).

We have to wait out the housing bubble bursting, and the chaos in the banking/financial markets. It may still take some time with all the bank failures, but we aren't that dependent on foreign markets....or as dependent as the Japanese.
 
Some other differences, Phil. We have been a net importer (consumer) nation for some time. they were net exporters. Their people had savings that could help them survive, our people are in debt up to their eyeballs and cannot take on any further debt and are having hard time paying down what debt they have. Grant you their real estate bubble led to stock market reaction. Our real estate bubble isn't done yet-CRE is just beginning to fail.
 
The import/export equation sometimes leaves my head spinning, if I stopped and thought about it. Yes, we are the largest importer of our own goods.

We are a net exporter of Japanese cars, and a net importer of goods from our own companies that have transferred manufacturing overseas.

In just about all of our computers, the hard drives are built in China, but designed in the US. Indian software professionals create software to be exported from India to the US.....by companies that are owned and operated by US firms.
 
Recent article I read on the Dollar...is saying that if the US dollar rises....the stock market will go down. Although there are certainly other factors affecting the US dollar; that is supposed to be the predominant!
 
mick504 said:
Recent article I read on the Dollar...is saying that if the US dollar rises....the stock market will go down. Although there are certainly other factors affecting the US dollar; that is supposed to be the predominant!
Click to expand...

When the dollar starts to strengthen, foreign investors will sell. Stock Price go down.......

Unless all of us rich Americans ----- spend all that ----- disposable income in the market - - by calling our brokers ----and buying

ummm well it sounds good:blink:
 
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