Brainstorming ideas

I think that the financial crisis and subsequent recession is definitely having a negative impact on economies around the world.  Countries around the world are trying to figure out how to get themselves out of this mess, that in my opinion, was created by greed.  One thing positive is that after all of this is over, hopefully lessons will be learned from it and there will be tighter standards to prevent something like this from happening again in the near future.  I don’t know if the financial crisis actually started in the U.S. or not, but I think that a lot of foreign investors throughout the world might not be so quick to jump into investing in U.S. companies after seeing what has happened over the past year.  Of course its not just the U.S. banks and companies struggling right now, its happening in different countries around the world.  I think that part of the international problem might be that some other countries attempt to imitate the U.S. in certain economical aspects, and when the U.S.’s economy is struggling, others may as well.  Also, there are other countries that peg their currency to the U.S. dollar.  The dollar’s fluctuation due to bubbles or recessions, or interest rates, or changes in the money supply might affect other currencies as well.  Politics have definitely been affected too, because any party that was in power or is currently in power during this crisis, is likely to not be re-elected.  We saw this in the U.S. with Obama handily defeating McCain.  I’m not saying that McCain would have won if our economy was booming at the time, but a lot of people just wanted to vote a different party into power that would hopefully offer some new ideas and solutions.  What is happening in the short-run is that the U.S., and probably many other developed countries around the world, are cutting interest rates to almost zero in order to get people and businesses to start borrowing and spending again, there has been and will be a whole lot of money pumped into the economy from the government plans, and people are getting help from the government to stay in their houses by making deals with the mortgage companies because of government mortgage bailout money and large failing companies are getting rescued by the government.  I think that all of this and other stuff that has been occurring will lead us to a pretty high economic boom within the next 3 or 4 years and it will also end up leading to inflation which the Fed will have to control by raising interest rates back up quite a bit.  As far as international goes, I think that in the short-run, other countries might not view the U.S. as being a totally safe place to invest their money, but in the long-run, the U.S. will once again prove that it can overcome any economic crisis that comes its way, and it is my understanding that even as bad as U.S. stocks have been doing over the past year, a lot of other countries have been doing much worse, so I guess that looks good.  I hope at least some of what I wrote makes sense.  This was definitely just me typing up my thoughts.  Anyways, I would like to have the question focus on international investing during the crisis and predicting how it will be affected after the crisis.  I think that it will be interesting to see how foreign investors have been reacting to the crisis, and how U.S. investors have reacted as far as there international investing strategies.  Are people actually investing more in the U.S. now since the stock market is hopefully at or close to its bottom, or are investors scared of the U.S. right now?  I will post more after doing more reading on the subject matter.

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