Thursday, October 27, 2011

Some real issues we should think about: Europe Leaders Forge Greek Bond Deal - WSJ.com

Europe Leaders Forge Greek Bond Deal - WSJ.com

Someone asks whether we aren't sick of hearing about Greece?

Well, could it be that the media is focusing on Greece to avoid people starting to think there might be something wrong with Obamanomics?

Just ponder a simple precept - i.e. that everyone needs money; and, few countries have enough and are running deficits. The real rate of return to savers is negative (so why save money and lose purchasing power). So, the ECB and Fed are printing money.

So - too much government spending and socialist consumption. No incentives for investment or growth (just the opposite - more and more tax increases - especially on investors and entrepreneurs and no change to labor laws to spur hiring or make it easier). As with GM and Chrysler, private lenders to Greece get a haircut or wiped out (??? how much is covered by default insurance).

Now one has to ask oneself if it doesn't seem that all of this is going to end badly; and, the longer it takes to end, the bigger the badly?

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