Brad Setser: Follow the Money: "But one thing hasn’t gone wrong.
The US net international investment position — if US direct investment abroad is valued at its market value — actually improved, absolutely and relative to US GDP...
The US economy has absorbed its share of blows over the last year:
Jobs have disappeared;
Oil prices have soared;
Consumer confidence is way down;
An important broker-dealer collapsed, prompting the Fed to facilitate the take-over of a very-troubled financial institution by a less-troubled financial institution;
And more financial institutions could have faced trouble absent access to Fed liquidity support.
There isn’t a lot for the US economy to celebrate this fourth of July.
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