Peter Blane

Foreign Influence

Posted in Consumer Confidence by wusspett on August 20, 2009
Tags: , , , , , , ,

The Dow Jones  is up 2.71% (from January 5th to today).  For that same time period:

Shanghai’s  SSE Composite Index is up 59.91%
Japan’s NIKKEI 225 is up 14.82%
China’s HANG SENG INDEX is up 35.14%
Britain’s FTSE 100 is up 3.72%
the French CAC 40 is up 7.74%
India’s BSE SENSEX is up 55.61%

Now, I know that the U.S. is the richest country, but, generally, I’m starting to wonder why so many other large, developed countries are outperforming us.  What that should say to those in authority in the U.S. is that confidence in the U.S.’s “business model” is low.  If a company has a decreaing stock value (the dollar), they need to increase confidence by increasing their return on equity or “profit” (adds value) to pay dividends (pay down debt).  A company can look at where they can cut costs, but, in politics, this will not happen.  Politicians and government in general is too much of a moral compass.  Cutting their unnecessary costs means “they don’t care”.  The juggling act they have to do is one I am not jealous of.  Take the autoworkers union, for example.  The government HAD to bail out these companies because of the moral obligation to keep the families of those workers supported.  A company should be concerned with its survival, in my opinion – not being concerned with its workers.  People should help people.


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