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Friday, January 3, 2014

Hurrah! The Euro-Crisis Is Over!

I am amazed about all the bullish news coming out of all corners of the media. The US is headed for a massive growth period and the dollar will go through the sky. The Eurozone is picking up growth and some countries are recording record employment levels. The survival of the Euro is no longer an issue because everything has been stabilized.

Greece, too, is on its way to an economic nirwana. The primary budget is in surplus; the current account is headed that way; the banks have been successfully recapitalized and are now in good shape; the Republic will return to the markets soon.

Makes me wonder what people have been worrying about in the recent past.

In a parody-interview about the sub-prime crisis, an investment banker was asked how such intelligent people like investment bankers could have made such terrible mistakes. His answer was: "We didn't make any mistakes. The mistake was made by those who started asking what those papers were really worth. Had they not asked that, we would have happily continued doing our thing".

So, here is the solution. Let's not ask what all those sovereign bonds are really worth and whether they can ever be paid. Let's not ask how a country like Greece will ever reach normal employment levels again. Those are silly questions which only disturb the positive view.

Things will be wonderful in 2014. It has been decreed that way, so let's not disturb that view. Instead, let's go out and invest all our money in stocks and bonds. They will all increase in value during 2014.

Nothing can go wrong, go wrong, go wrong...

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