Tourists Today, European Manufacturers / Services Providers Tomorrow

The Boston Globe recently featured an article talking about the binge shopping tendencies of European consumers coming to America to spend their Euros. Let's face it, the United States these days is just about as inexpensive a place as any to purchase such things as clothes, home appliances, electronics, etc. In fact, I recently took a colleague from China to Costco and his first remark was "these prices are just like China." Clearly, the weak dollar is having a huge impact on the spending and travel plans for vacationers, but I believe this will soon stretch into the manufacturing and services sector tomorrow. Seriously, the United States is looking very much like a low cost country relative to Europe these days given the near 100% rise of the currency against the dollar in the past seven years (the Euro was worth only .82 cents relative to the dollar in October of 2000). Perhaps European spending and investment -- as a result of the weak dollar -- will be the only thing that saves the US from recession in 2008.

Jason Busch

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