The US Market:

The U.S. financial crisis has shaken investor confidence in our. economy, and for good reason. After nearly a decade of excessive borrowing and lax financial regulation, the economy is in a painful credit crisis resulting in Bank failures, home foreclosures, credit card delinquencies. The credit crisis has brought the U.S. economy to a virtual standstill.

There is a growing sense of despair about America's economic future. The near-term health of the U.S. economy seems to be tied to the government's bailout package.  Americans are concerned about the nation's long-term health.

But let's reassess the prospects of the U.S. economy.  Factors that made the U.S. a strong economic force in the past are still strong and are part of what will bring the U.S. out of this mess.  The following list will help show why I think we will have a strong and promising economic future.

• The U.S. has the Largest and Most Productive Economy in the World:  The U.S. accounts for 25% of global gross domestic product (GDP) and produces more output in a year (around $14 trillion) than the next four largest economies (Japan, China, Germany and the United Kingdom) combined.
  


• The U.S. is the World's Leading Manufacture of Goods:  The U.S. is ranked number one in output.  America's share of global manufacturing output was 20.5% in 2006 (the latest year of available data).
  


• The U.S. is the Largest Exporter of Goods and Services in the World:  The U.S. is a significant exporter of both goods and services.  When combined, America emerges as the world's top exporter with combined exports totaling $1.6 trillion in 2007, or 9.4% of total global trade.
  


• The U.S. Remains the World's Top Destination for Foreign Direct investments:  The U.S. remains the most attractive market in the world for foreign investors.  FDI inflows to the U.S. totaled $1.3 trillion between 2000 and 2007.
  


• America is the Home to the World's Top Global Brands:  More than half (52%) of the world's top 100 brands were American in 2008.
  


• The U.S. Remains the World's Technology Leader:  The U.S. remains the most innovative economy in the world. That continues to attract the best and brightest from around the world to live and work here. America is the largest market in the world for information technology spending on hardware, software and services.
  


• The U.S. has the Most Top-Ranked Universities in the World:  The best universities in the world are in the U.S.  Nearly 40% of the universities in the QS World Rankings' top 100 universities are found in the U.S.
  


• The U.S. Dollar is Still the World's Top Reserve Currency:  The U.S. dollar remains the reserve currency of choice for many nations.
  


• The U.S. Still has the Number 1 Military:  Military might is still critical, especially in a world where geo-strategic-economic flashpoints continue to simmer.  U.S. military expenditures have increased sharply during the past few years due to the Iraq and Afghanistan conflict.
  


• The U.S. Ranks Number One in Global Competitiveness:  Based on the latest competitiveness survey from the World Economic Forum, the U.S. ranks as the world's most competitive economy.

What does this mean for us Americans?

The U.S. right now does not have a perfect economy with our credit market in turmoil.  America's crumbling physical infrastructure, unwieldy healthcare system and debtor nation status require immediate attention.  Still, the U.S. remains the most competitive economy in the world.  The economical building blocks still remain quite strong.  As the Credit Market heals, so will the Real Estate market, the job market, manufacturing and hopefully we will be back in a strong economic market in the near future.

Alan 'AJ' Nisen
Mortgage Loan Officer
Lafayette Chamber of Commerce Board Member
Orinda Chamber of Commerce Board Member
Alamo Chamber of Commerce VP
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