We’re Bullish on the US Dollar Today ... and Tomorrow!

Do you remember what economists used to tell us about the global economy? If not, let me remind you.

I remember the mantra-like chant from very clearly: There are major imbalances across the global economy. Some countries save too much, others borrow and spend too much.

Of course the US seemed be the one to blame no matter the shape or weaknesses elsewhere. The gut wrenching credit crunch of 2008 is a symptom of global rebalancing. And there's no reason why it won't continue well into 2009. But my guess for 2009 is this: the United States economy could get a lot uglier, but the pain of rebalancing will be even more severe in Europe, Asia, and Latin America and hit those economies a lot harder than is now priced into the market.