5% Down Day

by Byron on August 5, 2011

What a day.  5% to the downside.

Europe is about to have a serious liquidity crisis.  Of course, in the words of the Alan Greenspan, liquidity is psychology, not economics.  Folks over there are starting to think the system might fail.  Of course, there’s actually a chance they could be right.  In retrospect, a monetary union without a fiscal union is not so bright.  Everything looks larger in the rearview.

Oh, that and we might have a recession over here on this side of the pond.

Will the world become more capitalistic through the pain, or less?  Assuming we all remain capitalists, this will be an excellent buying opportunity.  Even 10 or 20% lower from here.  Starting to buy.  Carefully.

 

Leave a Comment

Previous post:

Next post: