US Economic Trade News and more.

News today shows the US Trade balance is at levels above what economists have estimated. 665 Billion dollars left our shores and returned as investments in securities and debt offerings during 2004. Can this continue? Its is hard to think so when the Dollar is weak and can potential break to the downside against other major currencies. GM also may be reporting some future losses and Ford's Financing Arm, (whose bond status is just above junk) is getting ready to offer almost 2 billion in debt. What seems to be keeping this going? A huge factor is the wealth effect of real estate, where new data is showing up to 1/3 of all purchasing occurring in the country may be due to 2nd homes (most of that for speculative investment purposes). There is still more potential for speculation in the Real Estate game, but the trick is to see how much higher things can go. This could lead to an economic unwinding the US hasn't seen in a while.