For the first time since the Second World War international investors are shying away from investing in US multinationals
Karen Zuba
Nov. 23, 2007

It is easy to devalue dollar without any reason and try to forge ahead a weak export led recovery. The fiscal policies of the Americans have devastated American financial system but also that of the world.

It is total fiscal mismanagement that has caused the financial meltdown. The whole thing has made international investors wary on the capability of Americans in fiscal management in general.

The mortgage fiasco and the real estate bubble was a creation of the Federal Reserve and Allan Greenspan led the whole effort. It was one of the most irresponsible fiscal policies ever executed by any central bank in the world.

The US dollar is in a free fall. The resultant rises in export in miniscule. The trade and budget deficit is skyrocketing. Canadian dollar has the potential to be 30 to 40% more valuable that US Dollar.

For the first time since the Second World War international investors are shying away from investing in US multinationals.

Investors have lost faith in US policies. They just cannot depend on American words. Investors are losing their appetite for US multinationals amid mounting worries that the weak dollar and growth in the rest of the world will fail to offset a slowing domestic economy. According to Bank of America, large-cap US multinationals, the darlings of the investment world for most of this year, have been roughed up over the past few weeks. More trouble lies ahead.

The heavy equipment maker Caterpillar, the logistics giant FedEx, and the technology group Cisco all have provided lower guidance. The weak dollar led surge in exports are miniscule and cannot compensate the recession in US caused by neoconservative fiacal policies and management. The financial meltdown continues slowly but steadily.

For the first time since the Second World War international investors are shying away from investing in US multinationals
Karen Zuba
It is total fiscal mismanagement that has caused the financial meltdown. The whole thing has made international investors wary on the capability of Americans in fiscal management in general.
READ MORE>>

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