Are We Insane?
Nolan Parker, Nolan Parker is President at Parker Knight Capital Management LLC,
Wednesday, July 15, 2015
The question everyone should be asking themselves, but even more specifically the Euro-Zone Leaders should be asking themselves is, “Are we Insane?”.
I’m sure most people are aware of Albert Einstein’s infamous quote,
“Insanity: doing the same thing over and over again and expecting different results”.
For the first time since the 2011 meltdown, the risk in the U.S. Stock markets are to the downside.
However, around the world today stock markets rallied on optimism of a Greek deal with European leaders but, let’s remember that this “deal” is only a preliminary agreement rather than a finalized obligation.
People know who Alexis Tsipras is, yet have neglected to remember who he works for: The Greek People, who by the way, declared not stated, “EXIT!” in a nearly 2/3 NO vote.
Has it come to this?
Another correction 10-20% looms and yet 1/4 through the storm the passengers on the ship have forgotten what they had so clearly seen coming all along, a Greek exit from the Euro-Zone.
Let’s face it, even if Greece jumps on board with every single demand, and reform (which they won’t) they still will find themselves cutting government spending which is bad for the economy, and raising taxes which is also bad for the Greek economy.
Yes, the banks will be solvent (for a time), and the country will be able to pay back the interest it owes from earlier loans with yes, more loans (from the people the owe the money to in the first place) which will accrue even more interest (they can’t pay back) which will eventually lead the Greek’s to one of two options (again): Complete default, or More Loans.
So I ask again, “Are we insane?”.