Re: Peter Garber, trade deficits, & bubbles

[Daniel Davies <dsquared@xxxxxxxxxxxxxxxx>]

chrikey I hadn't realised that things had got this serious.  Count me
officially worried.

As the resident Fed numbers guru, Doug, you're presumably in a position to
confirm that this investment income balance isn't affected too much by
rinkydink "balance of payments" items between the USA and tax havens?  The
Guardian today is suggesting that something like 26% of the profits of US
multinationals are booked through havens, but the number looks too big and
the word "multinationals" in the absence of a specific definition is always
a red flag for me.

dd

-----Original Message-----
Except that in the latest BoP release, our balance on investment
income has gone close to 0 - $2.6b in 04Q2, down from $12.2b in 04Q1.
You can have a positive rate of return spread, but if the stocks keep
going against you, you'll end up in the hole anyway.

Doug