Nov 26, 2007

United States does not unexpectedly turn off the credit spigot

What we want to do with this book is make this addition of
risk as understandable and palatable as possible. We show you
how low your current risk level probably is, and outline intelligent
ways to raise it. We also show you how to take other steps to
diversify your portfolio, an essential part of managing your risks.
Then, we look at risk from another perspective—the what-if
perspective—as we examine what can go wrong in the current investing
environment.For example, we explore the threat of those twin deficits. We
think the current account deficit, which must be reduced at some
point, can be slimmed down without too much damage. But that
assumes that there is no threat of protectionism and that the rest
of the world, which has been happy to keep lending to the United
States, does not unexpectedly turn off the credit spigot.

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