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Are We Being Too Gloomy?

This week, Forbes Financial Columnist, Ken Fisher, published an article alleging that we’re all being a bit too gloomy about America’s economic prospects for 2008. In this article, titles, We’re Too Gloomy, he reminds us how connected the US economy is with world markets. “Since the foreign economy is twice America’s size, and is strong, America should do well in 2008 — better, at any rate, than people expect,” says Fisher.

Fisher remains optimistic about the new year, partially on the grounds that the overall world economy in the larger foreign markets are doing very well, and America isn’t doing badly overall. Sometimes we think we’re doing badly, but the GDP (gross domestic product) has actually been stronger than expected during each quarter of 2007. And yet, each quarter, we continue to forecast weak growth for the following quarter.

As Americans, we often like to think that we stand alone. But we don’t. We live in a world economy. What happens in other markets affects us as much as what happens here affects other markets. No, we are not alone. Realizing that, maybe we should cheer up a bit and stop being so gloomy!

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One Response to “Are We Being Too Gloomy?”

  1. Anonymous Says:

    This was an interesting take. I guess being only one third of the world economy, which is strong overall, does help to some degree. But there’s still a lot of wiggle room in there, so our economy could easily get better or worse by a fair amount even if the world economy doesn’t change.

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