I’m an optimistic guy in general. I’m the type of person who sees a glass as half full, a poor NFL season (Colts…) as an opportunity to draft the best player, etc. That being said, these days, I find it increasingly difficult to be optimistic about the economy, and indirectly the stock markets… Europe is the biggest sign of course with Spain already struggling to roll its debt, now having to start saving both its banks and some of its regions. Greece has been a major problem and it certainly attracts a lot of attention but the truth is that it barely counts when you look at Europe.
Having a country like Spain or Italy go down that path though would make Greece look like that practice that everyone goes through when boarding a big cruise ship. No matter how well or not the practice is executed, it doesn’t seem to help as much as you’d like when the actual emergency hits.
Everywhere around the world, economic growth is small, real estate prices are shaky at best, governments are being forced to withdraw some of their promises regarding health care, education, retirement benefits, etc. Many are blaming the wealthy but the fact is that it’s not that simple. Attacking private equity as some democrats have been doing lately is a little bit like suggesting to raise taxes on the wealthy. It’s a big oversimplication. In this new complex and global planet, solving problems has become increasingly complicated.