Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
While the US job creation might have been a good thing for USAmericans, the rest of the world didn't fare as good.

Dean Baker mentions tens of millions of people who saw much of their retirement savings disappear in the crash, he doesn't mention investors from all around the world who also saw their capital, thrown into the supposedly most profitable national economy by the trillions, go up in smoke. A capital flow 'helped' by FED (and other US economic governance) policies in wide-ranging fields, and distorting and hurting the economies this money left.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Mon Aug 29th, 2005 at 03:36:30 PM EST
[ Parent ]
I've always wondered if one of the reasons the German (and other European) economy(ies) fared poorly after 2000 is that a lot of individual investors from Europe joined the dotcom fun pretty late in the game, and they were the ones that were left holding the bag. American investors, except for the few most extreme cases, if they invested earlier in the 90S would stille come out in positive territory. Europeans (starting with the Deutsche Telekoms, Alcatels and the like) that bought assets at inflated prices in 1999-2000 had to support real losses. I remember seeing that German foreign investments reached records in these years (to the tune of 150 billion euros, I think), and a good chunk of it was probably lost altogether. Quite a nasty shock for the economy.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Mon Aug 29th, 2005 at 05:51:51 PM EST
[ Parent ]
I think you're definitely onto something there. The question is, will internationals get burnt by this new bubble? Will the Chinese investment method (mostly US Treasury Bonds) insulate them from a similar scenario?

Also, an interesting question is how much did Japanese companies lose in the dot com bubble and what effect did it have?

by Metatone (metatone [a|t] gmail (dot) com) on Mon Aug 29th, 2005 at 06:30:26 PM EST
[ Parent ]


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