Our imports increase as long as the economy grows. But there's certainly a concern that our exports are down despite the fact that Asian and European economies have begun to rebound. Maintaining the high deficit is dangerous because that means a huge debt, and if our creditors lose confidence in the U. S. economy and begin selling dollars, which drives down the value of the currency, that could spark a serious inflation threat.
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Housing prices in many communities will appreciate less rapidly --- and in some communities actually fall. This reduces the wealth effect from real estate assets, shrinks home equity borrowing, and increases pressure on households to replenish their savings.
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In March and April, interest rates were going up very gradually, and tech investors figured Greenspan would taper off, because this was an election year. Now, the inflation picture is getting worse, and Greenspan is getting serious. And they're feeling the effects of higher interest rates.
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The current account deficit is a ticking time bomb. We don't know when it s going to explode, but it cannot continue the way the White House describes.
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The central bank seems more worried than before that resources feeding the U. S. economic expansion are getting scarce.
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It's fairly safe to say that the trade deficit may have peaked now that oil prices are falling and the U.S. economy is showing signs of slowing down.
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The final wisdom of life requires not the annulment of incongruity but the achievement of serenity within and above it.
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The people who run a university are far more qualified and intelligent in handling people than someone who inherited his money and used it to buy a pro team.
Hayden Fry