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I have a thought pertaining to the Asia crisis.
The media has been focusing on this problem as it
relates to corporate earnings, reduced sales in asia
etc.
I lived in Japan for 11 years and have traveled to
most asian countries many times. We don't sell
anything in asia! All of the products are asian.
Heres my thought. Although we don't sell anything in
asia we do mfg most things in asia.
Can it not be said, therefore, that corp earnings
will be significantly higher for corp that mfg in
asia due to the weakening foriegn currency and
strengthening dollar.
i.e. Nike mfg cost for shoes has been reduced by
nearly 50% due to the weak asian currencies. The
same can be said about all of the electronic mfgs.
I understand in exporting terms our products will
cost more in asia and therefore be less desireable
but as I hae already stated we (americans) don't sell
anything in asia.
Conclusion: Falling/failing currencies in asia may
be bad for asians and bad for future exports but more
importantly, great for US companies who mfg in asia.
John
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john@xxxxxxxxxxxxxx
One friend in a lifetime is much; two are many; three
are hardly possible.
--Henry Adams
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