Loading ...
Sorry, an error occurred while loading the content.

Down down down

Expand Messages
  • William
    Now the business community steps forward and sells in response to the european political and financial changes. Overall this can be viewed as a flight from
    Message 1 of 1 , May 8, 2012
    • 0 Attachment
      Now the business"community" steps forward and sells in response to the european political and financial changes. Overall this can be viewed as a flight from reality from radical opposing factions. Now let us define terms. Austerity is roughly the right wing contention that cutting spending, especially social spending will somehow allow the wealthy to create jobs and revitalise economies. The socialists will cut defense and tax the rich. Most interestingly Europe is headed both ways at once. Austerity is hardly popular and hard right governments are being installed in Greece and Spain. In France the left is coming into power while in the US the presidential race is taking on normal rich Vs. poor dimensions.
      So the market is down, oil is down, food comodities are down on the old adage that uncertainty causes markets to drop. However in these times there is no safe refuge for the money gleaned in this sell off. There are no appreciable interest rates in the US with bonds paying practically zero rates . So radicalism from both ends of the spectrum forces moderate people to sell and cause even greater disentegration of the finances of individuals and countries.
      Now trust is the basis of strong , progressive countries. The far right and far left have no trust between them and they are pulling apart the moderate middle. At some unknown point this discord affects production of necessary goods and services and that causes the kind of discord that kills people.
      How far will it go? No one knows as the ability of moderates to withstand such stress is an unknown. When do you break and sell and go radical left or right? I know governments are falling in europe and the social structure of the countries themselves may fail. That is revolution and civil war. Southern europe may fall into default and chaos. I will watch France as it is of moderate size and in moderate distress. If the socialists expand social spending, make vacations longer, trust will further deteriorate and Europe will fall into chaos. Germany and Great Britain will be drawn in and may or may not survive. In the US we are ahead of the curve and should Obama win his moderate policies could avoid castrophy. If Rommney wins business will run rampant and USA will join the chaos. At the moment the DOW is off 137 points. That is survivable but if it continues then the recession will return and the trust of the world community will stand naked like a line of dominos. Bill
    Your message has been successfully submitted and would be delivered to recipients shortly.