Apr 23, 2010

The essential lunacy of what we have done to our economic system is illustrated well enough by the simple lede in a Reuter's market story:

"U.S. stock index futures rose slightly on Friday as Greece asked the European Union and International Monetary Fund to trigger an aid package in what could be the largest state bailout ever attempted."

Translation: Greece borrowed until its creditors had no more chance of repayment that you do of ever seeing that $500 you loaned you brother-in-law back in 1984. So the world will loan Greece some more money in hopes that a miracle will occur before anyone notices the (a) resultant inflation of currencies and (b) irony of adding to debt to retire debt.

You say it makes you uncomfortable to have the value of your hundred shares of SWHC dependant on things like what Greek pols decide to spend to support the crucial grape leaf industry? Me too, except I own, Thank God, no SWHC. I have others that the Greeks and Tim G. are fubaring, however.








No comments: