market myths from Briefing.com

the myth of credit crunch --revaluation of assets downwards is not a credit crunch --credit crunch occurs when banks tighten lending standards across all sectors --bank credit has surged in recent months, total bank credit has exploded at 12 % annual rate due to a shift in corporate financing from CP to bank loans the myth of weak dollar --weak dollar is good for U.S stocks, espcially for exporters --concern about inflation is unfounded. Over the past five years, the exchagne rate of dollar has fallen 30% against Euro. infatlion rates still fell the myth of large U.S budget deficit --U.S budget deficit is low and shrinking. total debt burden of US is declining too --budget deficit in 2004 3.5% of GDP, 2.6% in 2005, 1.9 in 2006, 1.2 Sep 2007, average of the last 40 years --total debt dropped from 36.9% in 2006 to 36.5% 2007 What it ALL means --near term action could be choppy --long term outlook is postive