Friday, June 12, 2015
Friday Beaver - Beavers don't lend
Neither a borrower or a lender be.
Wise advice and older than dirt if you look at the world situation. China's economy is slowing, has been for some time now. After the housing bust there (remember there's entire cities that sit empty there) investors moved to stocks. One can only assume their markets are as inflated as the tulip fiasco a century plus back. There is the Greek tragedy playing out. We should know by months' end whether it will be default or the can gets kicked farther down the road, but you can only kick the can for so long. Eventually somebody wants paid but nobody wants to face up to the facts. Greece is broke and sucking more money from pensioners isn't going to help the GDP.
There's the Ukraine needing around $15 billion to stay afloat. So which loan shark will it be the east or the west? Putin would love nothing better than to take them under his wing just don't have any unkind words for him should you take the deal. Guess bribery and extortion were much easier in the old Soviet days.
Want to be a "bajillionare"? Then head to Zimbabwe. A dollar U.S. will get you $35 trillion Zimbabwean dollars. And we wonder why there's unrest in that part of the world.
Nigeria - A wonderful place with educated people and no opportunities unless of course you've invented something more creative than the dead prince scam. Bet there's 419 ways to say no to that. We're hearing the latest profession involves taking bribes from drug smugglers from South America so their cargo gets to Europe.
Somehow though in the grand scheme of things it all boils down to perceptions. What is the true value of an item? Take housing for example. Did you know that there are still 4 million people in the U.S. who are underwater with their mortgages. Their homes are worth less than what they owe. This to the tune of $579 billion according to Zillow. But the truth there is that people borrowed when the market was artificially high. A two bedroom condo in the suburbs is not worth a quarter of a million dollars. But if you believe that I just might be able to dig up some tulip bulbs for you. Just have your certified checks ready.
Bank fails later...