If one is going to go to college the best way to do it is with someone else’s money. If that can’t be done at least spend your money, and it will be a pile of money, on a degree which will serve you well. There isn’t a huge demand for sociologists. Art history, as much as I love it, is not a strong major either.
See, now that we know what the problems are, getting the whole Greek economic crisis thing under control should be pretty easy.
Mohamed El-Erian says the Greek “no” vote is like this scene from the classic movie Network.
The periphery of Europe has been eroding for a long time but things are speeding up. Think of Greece as a headland crumbling into an unrelenting and angry financial sea.
But it’s a recovery…
Wait till the downturn. Things are a little too real in this country already.
Debt can be a very valuable tool when used wisely and with caution. One has to remember however what can happen if one over leverages oneself. You and I are not Goldman Sachs. We can’t ask the government for a bailout.
What’s the old adage? Never engage in a land war in Asia? Well we tossed that one out a while ago and now it looks like we might be heading for one on the high seas. No kidding. China is building island bases in the South China Sea, right over massive deposits of oil and smack dab in the middle of Asian trade routes, and we are not happy about it. In fact we’ve ordered China to essentially stop immediately. They are not complying, and are using diplomatic talk of the kind which isn’t very diplomatic.
We have gotten to the point where sober minded people (well probably most of the time) with serious skin in the game are getting concerned.
Interesting because a whole lot of people disagree with the very very statist and crony Lula da Silva. In fact hundreds of thousands turned out in the street to protest this ongoing system (and the current president) just a few of weeks ago.
Menos Marx. Mais Mises.
At this point if you still have a pile of euros in a Greek bank you almost deserve to be taxed in such a terrible way. Of course most of the accounts in play here aren’t stuffed to the gills with money but are everyday accounts used for paying rent and buying groceries.
But not to worry, rich folks may soon see capital controls on transfers of over a million euros. And if you have a million euros in a Greek bank at this point, after all that has happened, I don’t have all that much sympathy.
Both the withdrawal tax and the capital controls still have to be approved by authorities. One can only assume that queues are wrapping around the Athens Wells Fargo as I write this.
I read something somewhere which went something like this;
“Those who don’t understand interest pay it. Those who do earn it.”
This is an oversimplification but the spirit is right on the money (so to speak.) Vast swathes of the suburbs are awash in debt. It contributes greatly to the quiet (so quiet that for many it is unspoken) desperation of the American middle class. It’s pretty sad actually. Particularly when the banks lending via credit cards are getting their money at near 0% interest from the Fed.
Call it the new abnormal.
Since 2008 the world has been turned upside down. In our collective panic we have disrupted whatever used to pass for economic homeostasis. Now the globe is moving (moved) toward a negative interest rate environment for government bonds.
Please, take my money. I’ll pay you to take my money! Why am I paying a government to hold my money? Well, because the economy is so healthy of course.
The Fed will always be able to stop a crash. Just like how the prices of houses always go up?
Holy moly, real live economic sanity on the pages of The New York Times!
And on the subject of higher education costs to boot. One of the editors must have been out sick or on peyote or something.
My wife and I were just talking about how we hoped the student debt bubble would hurry up and deflate. We have kids to put through school in the not too distant future and the sooner things settle out the better. The current situation cannot continue. Tuitions are unsustainable. Student debt has fueled a bubble in the University system and it is going to end. Perhaps badly.
This week we may have gotten a glimpse of things to come. Just down the road from me, Sweet Briar College has decided to close up shop. Mark Cuban thinks it’s the first of many.
It’s a simple truism. Everything, everything, has a cost. What appears to be free isn’t. Debt fueled spending? That comes from somewhere. It’s not like the law of thermodynamics was somehow suspended for economic purposes.
But many people act like it has been. This is folly.