The world pays the bill for US credit crisis?

The world pays the bill for US credit crisis?
Nov 28, 2008 03:47
guest6896	The data of BEA reveals that America's overseas assets increased 3.56 trillion dollars in 2007. By the end of last year, US had accummulated its overseas assets to 19.46 trillion dollars. This means that the American investors do investment overseas to earn huge profits. What does other countries do? They are busy with accumulating dollar assets. Last year, the foreign investors accumulated 3.43 trillion US assets. By the end of last year, US's external total debt had reached 21.18 trillion dollars. However, the dollar has devalued a lot since 2002. With dollar devaluing, its external total debt has decreased 3.58 trillion dollars. Maybe, this is the real reason why US lets the dollar devalue. The credit crisis in US triggers the financial crisis and US has suffered a lot from the financial crisis. What's more, the whole world are affected by the financial crisis. The world is bearing the losses caused by America. By the way, US's external debts have decreased again. Now the world is paying the bill for US credit crisis.

Nov 28, 2008 03:47

guest6896

The data of BEA reveals that America's overseas assets increased 3.56 trillion dollars in 2007. By the end of last year, US had accummulated its overseas assets to 19.46 trillion dollars. This means that the American investors do investment overseas to earn huge profits. What does other countries do? They are busy with accumulating dollar assets. Last year, the foreign investors accumulated 3.43 trillion US assets.

By the end of last year, US's external total debt had reached 21.18 trillion dollars. However, the dollar has devalued a lot since 2002. With dollar devaluing, its external total debt has decreased 3.58 trillion dollars. Maybe, this is the real reason why US lets the dollar devalue.

The credit crisis in US triggers the financial crisis and US has suffered a lot from the financial crisis. What's more, the whole world are affected by the financial crisis. The world is bearing the losses caused by America. By the way, US's external debts have decreased again.

Now the world is paying the bill for US credit crisis.

Nov 28, 2008 19:58	#1
WCTMAN Points: Join Date: Dec 17, 2005 Status: Offline	It is sort of like not getting an invitation to the party, but getting stuck with the bill afterwards.

Nov 29, 2008 07:20	#2
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	A very good simple and direct analogy.

Nov 29, 2008 11:31

MARRIE
Points:
Join Date: Jan 7, 2008
Status: Offline

>>US's external debts have decreased again.<<

The increase of US overseas investment assets are offset by devaluation of U$, which is exchange risk that could be addressed by hedging risk mgt in US corp accounting book. However, Devaluating U$ will deepen the crisis in credit market coz it keeps foreign funding from flowing into US who is now definitely eager for cash injection!! TradeOff and contraditions is economy.

Nov 29, 2008 11:52	#4
COOLSPRINGS Points: Join Date: May 19, 2008 Status: Offline	If US credit market losed its glamour to foreign investors, down the road, US corps was paralyzed by weak credit facilities, US empire would be on the track of decline.

Nov 29, 2008 18:24	#5
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	......It already is.

Nov 30, 2008 10:05

MARRIE
Points:
Join Date: Jan 7, 2008
Status: Offline

Take a look at profile the oil corp who seems to be the biggest winner in this crisis,ie, revenues or operating profit 5 - ??? times than before.

and take another look at histoical transations in stock market before crisis, who is the biggest winner, those CEO or VP whose stock options fled away at the highest bubbled values and whale-like ate up the bonus that is based on their so -call management performance which is reflected on bubbled (fraud or manipulated) profit in their accounting book!

Bunches and bunches layoffs each day in Wall Street, Harvard top biz school enrollment list has been saturated.

Chinese visa officers these days are busy coz bunches and buches of tech. guys, especially IT guys ready to go back ...

Dec 1, 2008 03:52	#7
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Sounds reasonable! But I don't think US makes use of the credit crisis intentionally to decrease their external debts. Too expensive!

Dec 1, 2008 07:58	#8
DODGER Points: Join Date: Jul 15, 2007 Status: Offline	I’m not one for conspiracy theories but this one does make some sense to me. Dodger.

Dec 1, 2008 17:58	#9
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	There could be intention involved, but trade offs or conflicts among economic policies made US slapped itself on the face.

Dec 2, 2008 03:46	#10
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: Offline	There could be intention involved, but trade offs or conflicts among economic policies made US slapped itself on the face. So US needs to pay the bill by itself, haha.

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