Yes, it is all Greek to me.
If you can make sense out of the mess over the weekend, or the perceived “agreekment” in the final hours – as they always seem to come – then my hat is off to you.
In the end, we stand by the idea that letting them go was likely better in the long run. Sure, it would cause a little pain for a little while…but the aftermath would have been more effective.
Now, if they do operate under the agreement noted, specifically the $50B privatization fund required as collateral, then we may be seeing the first steps toward a more normalized economy. But it is a long road….and for most of the world, an unimportant one. Yes, I know that sounds foolish but think about it for awhile. : )
In the end, their masses will need to start paying taxes, work a full work week and not retire before 65 to 70. Having everything done for you, paying nothing for it and working only part-time indeed is a great life to imagine–but it is not realistic.
There is a comical theme to all of this:
Many moons ago when we had three broadcast stations and three nightly news shows, we would have never heard about Greece.
Only a few would have ever even known of the events.
Surely, we cannot sit here now in the advanced world we live in and assume that Greece and its economic issues will some how trample over the other 99% of the world’s GDP.
Seriously folks – we need to change the recording….soon.
Let Me Tell You a Story
1982, skyrocketing inflation, ridiculously high mortgage costs, oil embargo’s, huge budget deficits, terrible sentiment, a crappy jobs market, coming off the 70’s, a lost decade and serious recessionary times. The manufacturing sector of our economy was gutted, the “rust belt” was often the reference.
The DOW? 970 on my first Friday.
Why do I list all of this?
It’s a lesson for us, of sorts.
Back then, most just focused on the problems – as we seem to do today as well.
It was hard to ignore things – it all looked pretty tough…like now.
The experts suggesting we fear the worst sure sounded (and felt) correct. The horizon was dark….like now.
But history has taught us that while all were paying attention to the problems, there was something else unfolding.
Something the country had never experienced in its history.
It was the largest demographic bubble to ever enter the working economic system.
We know them now as the Baby Boomers.
20 years from now, a time most cannot even find the window to imagine, we will look back and see another lesson much like the one from the early 80’s.
We will learn then that the new wealthy part of the economy will be those who paid attention to what was really happening….while everyone else focused on all the current problems.
We have a choice – < /em>
We can focus on all the things currently clouding the horizon – Greece, conflict, eurozone, deficits, debt, currencies, etc., etc., etc.
You can see it is working – sentiment stinks and that is great for summer swoon shopping in August:
(note we are in the same range as March 2009–wow)
We can focus on the one common theme linking the last “lost decade” with the most recent “lost decade”:
T hey both preceded an economic and demographic event never before witnessed by the US economy.
Then, it was the Baby Boom – and while everyone was worried and focused on problems, the world changed.
Now, something even bigger than the Baby Boom is unfolding…it is the tailwind no one speaks of – or even feels – as it is lost in the frenzy over “problems”.
Now, it is Gen Y…and like it or not, fearful or not…we will not stop it from unfolding.
And the world?
It will change again.
Pray for a summer swoon…..