[quote=JWM in SD]I see a number of you still don’t get it after 2 plus years. The usual suspects too.
Wait until you see what QE2 and margin compression does to those prosperous companies in San Diego.
I warned you back then and nobody listened. $2Trillion later….and you’re still worried about value of homes in Carmel Valley?
sigh….[/quote]
So question: (and it’s a serious one).
if a u.s. company derives predominantly it’s revenue from overseas (say product x to electronics manu), how will a weakened dollar make it harder to sell said products abroad compared to a competitor based overseas with a stronger currency? Did the u.s. domestic company just gain an advantage in that it is now cheaper relative to overseas competitors? I mean let’s say product X costs $100, and the dollar gets wacked relative to peer currencies by 50%. How is this going to make it more difficult for said company to sell product X relative to some other competitor, say in europe who’s currency hasn’t gotten wacked? Serious question. And no, I’m not an economist. And no I’m not a subscriber that QE2,3,4,5,6 is a good thing at all…Because their comes a point when foreign creditors say enough is enough.
I’m still waiting to see what those $2Trillion did to some of these company’s current margins..It didn’t seem to do squat, but maybe I’m missing something…On the other hand, the state of the u.s. country in general, well that’s a different story…
