My journey examining Europe began with Greece which seems wholly appropriate given its historical precedence. It started simply enough with the addition of their real assets and their real liabilities. It ended simply enough with the realization that the numbers did not add up. There was no prejudice then and there is none now. The numbers just don’t work; not for Greece and not for Europe and so a moment of disembarkation is coming because it has too and it is as simple as that. – From Mark Grant, author of Out of the Box
I wholly agree with Mr. Grant. I have been saying the same basic thing for several years now. It really is not that complicated when one simply focuses on the issue and removes all the noise. “There isn’t enough money.” Please stop with the “we can print our way out of this” nonsense. No you can’t. It will not work and anyone who takes the time to do some simple arithmetic knows this. Taking the pain of eliminating the bad debt through write downs, sales and in some cases default will be the medicine that actually fixes the problem. This will not come without significant costs and pain, however, it is the only real solution to the sickness that ails us all on a global basis.
Doug Hendee, CFP®
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author’s opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).