How long will it take for the American economy to get out of its current situation? Do you think the dollar will become stronger during 2008?
Love is the battery of life....
Hi,
Relatively, no. The improvement would be so small as to be insignificant.
Too much federal debt, too many defaults on personal debt, and too much write offs.
It will not be this year. Nor the next for the dollar to have the same level of confidence.
The American Economy will either experience mild inflation or a form of stagflation. That is about it. I doubt it will be a recession/depression. Here's why: even with the defaults occuring by banks and consumers, and american growth slowing, the market is not being allowed to correct itself. With the federal government assisting in bailouts, it perpetuates and artificially inflates the housing market and the dollar. This makes any monetary policy done by the Fed Bank doing more marginal harm when they wish to act. So no growth, and the dollar actually falters. So inflation and no growth = stagflation.
Don't get me wrong: everything American that is bound to recover looks like a deal to a foreign investor, or those with some money to do some stock or consumer purchasing. A lot of foreign soveriegn wealth funds (including oil) are snapping financial firms up.
So perhaps 3 to 4 years things will be better.
Best of luck
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Thanks for the great answer.
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