Of course, optimists have a comeback: If things are really that bad, why are so many foreign investors still buying US bonds? And they point out that those predicting problems from the trade deficit have been wrong so far. But I have two words for those who place their faith in the judgment of investors, and believe that a few good years are enough to prove the skeptics wrong: Nasdaq 5,000. Right now, forensic analysis seems to say that the trade position of United States is worse, not better, than it looks. And the answer to the question, “Why haven’t we paid a price for our trade deficit?” is, just you wait.
For Complete IIPM-Article, Click on IIPM-Editorial Column
Source IIPM-Editorial,2006
