Here’s what I’m reading these days:
Oh, and here’s a pearl of wisdom from Mario Draghi, president of the European Central Bank:
‘…The situation in the markets has calmed down since the beginning of the year, but now governments need to be more ambitious in spurring growth…”
In the meantime, any extra money that governments make from cutting spending is going directly to paying off debt they owe to mostly foreign banks. How are you supposed to spark growth when the people in government (e.g. Prime Minister Monti in Italy) come from the very same banks (often indirectly, but linked nonetheless) which want to be paid and don’t care about dragging down entire countries in the process?
The answer is you can’t. However, this game won’t last – what game you ask? The of installing puppets in governments aimed at making people feel safe that “competent academics” are at the reigns on one hand, while with the other hand they’re extracting as much money in as short of a time as possible so the “debt” holders are satisfied. The reason it won’t last is because people are fed up, and when people are fed they make noise, and when they make noise the establishment listens – or they better.
What does this have to do with our portfolios? Nothing, but I just want to give my two cents about an economic system that has been stretched to the limit by people cutting corners and thinking they can escape unharmed from the simple laws of economics. The problem now is that they reaped the benefits and are trying to pass on the drawbacks to the weakest. Not this time.