Greece has slipped its way out of the headlines in the recent days. the indices touch new highs and everything seems just fine. Investors are convinced that things are substantially better in the United States. I have lost quite a bit of capital fighting the trend and will wait for a better moment to strike a bearish stance once again. For the meantime though, with all the talk of a better economy and a “fixed” Greece, are their not lessons to take from their trials and tribulations?
No matter which political party you root for, their is an obvious spending problem throughout our government. These spending issues have plagued politics since the great depression and the New Deal. In the past we muddled through, but it seems now our debt burdens will way down on us. the fact of the matter is, it is just to large. Many invest in America because it is merely the best of the worst. Is the way we have it today, the way in which we should leave it for generations to come? The government obviously needs to get its balance sheet in order, just as have many Americans over the past few years.
This leads me to my point, and a very important one at that. With the United States government continually adding more debt to its balance sheet what should hinder Americans from doing the same? We have seen the Greeks wipe away debt and we have seen our neighbors do the same. The precedent set by everyone from the governments to your neighbor have implied that their is no responsibly for your debt. When will this catch up with us and in what shape and form? One can make an argument that student debt is the next bubble, but that is just a theory to be tackled another day. The fact of the matter is buying things on credit, that you can not afford is not good in any shape or form. Americans still have not learned to hinder their spending to realistic terms and will refuse to do so until their government does the same. So dear mother American, get your fiscal house in order.
If you do not understand our current debt predicament please refer to: U.S. National Debt A Bigger And Bigger Concern
Photo by Images_of_Money