I didn't vote for them. Buy your Volvo now before it's too late.
Click on Yahoo logo top left for rest of article by Martin Crutsinger, AP Economics Writer:
Treasury Secretary John Snow, when asked, sticks to his standard comment that the administration's position in favor of a strong dollar has not wavered.
Beyond such utterances has come no single government action. During its four years in power, not once has the administration intervened in currency markets to support the dollar or done anything else to stop the dollar's slide.
At one point last week, the greenback hit an all-time low when it took $1.30 to buy one euro, the common currency used by 12 European nations. That rate was down 8 percent from where the dollar stood in relationship to the euro just three months ago.
Most economists say the dollar, already down by about 10 percent over the past two years against a market basket of foreign currencies, has yet to reach its lowest point. In fact, some think the dollar needs to decline by 10 percent more to deal with climbing U.S. trade deficits.
The dollar's record low against the euro coincided with the government's report that the United States was running a trade deficit through September at annual rate of $592 billion. That compares with last year's record $496 billion.
As a result, the country is having to borrow almost $600 billion from foreigners this year to pay for the imported cars, televisions and other items Americans are buying.
Foreigners so far are more than willing to lend the money. The unsettling worry, however, is what could happen if foreigners suddenly lost interest in holding dollar-denominated investments. The outward rush from U.S. stock and bond markets could send stock prices crashing and interest rates soaring.
"The administration doesn't have any problem with a weaker dollar, but they don't want to say anything publicly for fear of roiling the markets and creating some sort of crisis," said Mark Zandi, chief economist at Economy.com.
As the dollar falls, analysts expect that the United States will start to see the benefits in its trade balance. A weaker dollar makes U.S. goods cheaper and more competitive on foreign markets. It also makes imports pricier for Americans, thus helping domestic manufacturers.
For an administration that has endured the loss of 2.7 million manufacturing jobs over the past four years, anything that offers the potential of lifting the fortunes of U.S. manufacturers has definite appeal.
The dollar's slide has been most pronounced against European currencies, but it has fallen only slightly against currencies in Asia. That is where the United States is running its biggest trade deficits.
China has tied its currency, the yuan, at a fixed rate to the U.S. dollar. Japan, South Korea, Taiwan and other nations in the region have intervened massively to keep their currencies from strengthening against the dollar, to keep from losing their own trade advantages.
U.S. manufacturers contend that China's tight peg to the dollar has undervalued the Chinese currency by as much as 40 percent, giving Chinese companies a huge competitive advantage over U.S. manufacturers.
The administration rejected a request Friday from 30 members of Congress to pursue an unfair trade practices case against China over the currency issue. Administration officials insist their diplomatic efforts eventually will produce results.
A Wall Street Journal editorial warned, "More than one White House term has been damaged by currency crises" while a New York Times editorial on Saturday said the administration was engaging in "an unwieldy and risky attempt" to reduce the country's trade imbalance.
soda is dead?? Is that why unit case volume grows every year? Its true that more rapid growth is in the sport drink/water/tea markets, but soda ain't dead!! So have a Coke and a smile!!
What if soda is a bust this holiday season?? What, and beer and wine too? We stop eating and drinking? Coke is taking its lumps but its still looking at record earnings, dividends, and free cash flow. It needs to fix the sports drink/water/tea market, yes, but Coke is the King of sodas and that ain't changin'. The expectations bar has been lowered multiple times and now Isdell can easily clear it (just like the last quaterly report). The stock won't hit new lows on the lowered guidance/increased marketing spend for '05 and beyond and it is clearly basing here near $40. The upside is the unclosed gap near $49, and near-term the gap below $43.
he is most optomistic to put it lightly....i think a "fool and his money are soon parted"..
>>canoe...where you on board back in (guessing) 97/98 when "two high" came here to post the perils of KO...
(i know you been here a long time..but not sure how long---in the day's of--- Not- buffet...intc...mycroft?...john 846...cash to burn..?????????????????????????????????))
i sure hope you have some other investments gordan....because this ain't gonna work this time...this is mostly dead money for a yr at the minimum...up 2 down 2...look at msft..same kinda stk...(OLD AND LAZY)....BUT no big payoff...
YOU'RE RIGHT!!!!!!!!!!....no need to be anxious....let it settle out....pay no attention to gordan...he has abscounded with/stolen a name to give him some supposed credibility...BUT..truth be known...he loves the stk....mistake # 2 in my book...don't fall in love with a stk
(FYI...#1 is...don't lose any money!!)
You are much too optomistic. Even KO management, those cheerleaders who have been fleecing the shareholder, are forecasting unpalatable goals. They, in any case, have been too optomistic for 6 years now. What if soda is a bust this holiday season? What if it takes too much promotion to maintain sluggish sales? That could be your 'disaster' scenario. For it would indicate that management still can't forecast. Pepsi management doesn't have this problem. I think they are stepping it up and taking the fight to KO territory in what is a beverage category that is out of favor with the public. That double whammy, with CCE's balance sheet, is going to wreak havoc.