Friday, Mar 16, 2007
For the first time, country also fails to record surplus in investment income
The star: U.S. trade deficit a record 6.5% of economy
The family silver has been sold.
What now for the US.
Investment flows turned negative by $7.3 billion from a surplus of $11.3 billion in 2005. It was the first time investment income has been negative on records going back to 1929. That means foreigners earned more on their U.S. holdings than Americans earned on their overseas investments.
"The hope is that the transition to a lower current account deficit goes smoothly, but the danger is that people stop loaning us money before they start buying our goods," said David Wyss, chief economist at Standard & Poor's in New York.
Posted by sold 2 rent 1 @ 11:57 AM (153 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. layers said...
And if the US can't meet its debt repayments, what then.....
2. Royston said...
...then they sell more and more assets to cover their interest payment and living expenses. Then the (Chinese) men with long black leather coats and baseball bats come around and take possession.
3. Taffee said...
not as far from the truth as you think..........this is so similar to the 1930's depression,its unreal