When comparing the U.S. economy to the rest of the world lately, investments and exchange traded funds (ETFs) focusing on the foreign markets have been in favor. The U.S. housing collapse and credit meltdown have taken headlines everywhere, but the reality is behind the numbers, which take on a different story.
One of his readers says that during the midst of our mortgage crisis, the U.S. economy still grew by 3.9% during the third quarter. This followed a 3.1% second quarter jump. In perspective, this is like "adding a Saudi Arabia to our economy" since the beginning of April.
This doesn’t mean the U.S. economy is perfect, nor is it devoid of any future problems. The U.S. is the wealthiest nation by GDP and the rest of the world isn’t even close. India and China are growing fast, but they have a long way to go. The U.S. economy is as large as bundling the next four largest economies in one – Japan, Germany, China and the United Kingdom.
A map, via strange maps, gets the point across in a fascinating way:
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.