Monday, January 19, 2004

Hmmm, good article on the effects a $ crash would have: US$ plunge could lead to full-blown financial crisis.

Supposedly Asian sectors would be hit harder than Europe, as they export more to the US. Does this mean that we in the UK would hardly suffer, as our exports are relatively low, and that we could actually *benefit* (as consumers) from the crash? At least, temporarily.

OK, prediction: we'll slump, rather than crash. People will probably wonder how it happened. Recovery will be slow. We'll be better off than others around the world. Of course, it could be the case that our trade deficit increases as a result, and we spend even more...

No comments: