Comments on: THE US-Created Global Recession: How Is Everyone Else Doing? http://www.morssglobalfinance.com/the-us-created-global-recession-how-is-everyone-else-doing/ Economics, Global Finance, Investment Strategies and Development. Thu, 19 Jan 2012 02:36:51 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Elliott Morss http://www.morssglobalfinance.com/the-us-created-global-recession-how-is-everyone-else-doing/comment-page-1/#comment-37 Elliott Morss Sat, 04 Apr 2009 15:13:41 +0000 http://www.morssglobalfinance.com/?p=191#comment-37 Jorge: You are asking a question about what will happen. What is now happening globally is without precedent. Or maybe there is a precedent, but we don't yet know what the precedent is. All I do is string together numbers I think are relevant and present them. Because the US is so big, what it tries to do affects everyone. Right now, it is losing 600,000-700,000 jobs monthly. To counter this, it plans to run a government deficit of $1.9 trillion this year. Nothing of this magnitude has ever been tried. On your question, I addressed it at least in part at http://www.lanacion.com.ar/nota.asp?nota_id=1086664. In essence, Argentina banks did not do much trading in asset-backed securities, so they avoided the direct effects of the credit freeze. Developers in Buenos Aires were building offices for foreign companies, and they will be hit. But Argentina is a natural resource rich country in primarily food items, and fortunately, the demand for these products is relatively stable. My biggest worry about Argentina is government policy. There does not appear to be a sound econoimic basis for what the government does. And this scares the citizens and foreign investors. Jorge:
You are asking a question about what will happen. What is now happening globally is without precedent. Or maybe there is a precedent, but we don’t yet know what the precedent is. All I do is string together numbers I think are relevant and present them. Because the US is so big, what it tries to do affects everyone. Right now, it is losing 600,000-700,000 jobs monthly. To counter this, it plans to run a government deficit of $1.9 trillion this year. Nothing of this magnitude has ever been tried.

On your question, I addressed it at least in part at http://www.lanacion.com.ar/nota.asp?nota_id=1086664. In essence, Argentina banks did not do much trading in asset-backed securities, so they avoided the direct effects of the credit freeze. Developers in Buenos Aires were building offices for foreign companies, and they will be hit. But Argentina is a natural resource rich country in primarily food items, and fortunately, the demand for these products is relatively stable.

My biggest worry about Argentina is government policy. There does not appear to be a sound econoimic basis for what the government does. And this scares the citizens and foreign investors.

]]> By: jorge ortiz http://www.morssglobalfinance.com/the-us-created-global-recession-how-is-everyone-else-doing/comment-page-1/#comment-35 jorge ortiz Thu, 02 Apr 2009 16:13:02 +0000 http://www.morssglobalfinance.com/?p=191#comment-35 Hi Elliott: Nice article. one question: so, you think the recession will not be as severe in emerging countries? and what do you think about Argentina? Thank you Jorge Hi Elliott: Nice article.
one question: so, you think the recession will not be as severe in emerging countries?
and what do you think about Argentina?
Thank you
Jorge

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