His last paragraph sums it up well
” An export-dependent world economy has leaned too hard for too long on the American consumer as the sustenance of economic growth. As the housing bubble bursts, overextended U.S. consumers can’t afford to carry that load any longer. Other countries must now learn to grow the old-fashioned way—drawing greater support from their home markets rather than free-riding on the United States.”
As I’ve said since early 06, when the US goes into a recession later this year, the rest of the world will follow. Because they are export dependent on the US consumer.
“European stocks declined for a third day, led by companies that depend on exports, after a Federal Reserve report showed slowing growth in the world’s largest economy.
Tomkins Plc, the world’s biggest maker of windshield wipers for cars, had its steepest drop since 1992 after it said profit will miss analysts’ estimates on slowing demand in North America. Ericsson AB and Bayerische Motoren Werke AG declined on concern their U.S. sales will drop. ”
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