Pardon my contradiction but it's kinda cool that on subjects that really matter, Kansas City seems to be the home of stark skepticism.
Check this clip from Bloomberg News: "William Black, associate professor of economics and law at the University of Missouri-Kansas City, talks about the outlook for the U.S., European and Chinese economies."
Money quote: "Governments cannot remain in power with 20% unemployment."
The future seems a lot more bleak than the fanboys writing about the economy in The Star . . . Who probably haven't even considered the Chinese bubble bursting and bringing the global economy down . . . Again.
"Governments cannot remain in power with 20% unemployment."
ReplyDeleteOf course they can. What a silly thing to say. Unemployment keeps wages & benefits low. There might be some unrest in Europe, but not here. Americans won't demonstrate against the rich, because they think that they have a chance to be rich. I actually know poor people who supported the tax cuts to the rich, just in case they become rich someday.
The problem is that using the same monetary policy for 27 countries with different fiscal policies was doomed from the begining. As soon as Greece got into financial trouble they had no realistic way of correcting it themselves. This lead to the decision of bailing them out or letting them become a failed state (aka a rock and a hard place). Once bailed out, precedent has been set making other countries more likely to default (Ireland). The euro was pretty doomed from the beginning.
ReplyDeleteNot to say the EU wasn't a good thing (it made it easier for American companies to enter the entire region instead of different regulation in each country).
Long story short, prepare for the inevitable, everything else is timing.