"Remember this is just One Man's Opinion"
Monday, May 10, 2010
Where is all this Money going to come from?
Where is all this money going to come from? It looks like the next crises is going to be a funding crises. Debt ratios won’t matter anymore because there is just not enough money to go around fund all these bailouts. Eventually the investor in the debt will want more than just few % points and may decide we just have too much of all this debt that in the end will never be paid out. When are these governments going to learn that these Debt crises cannot be solved with more Debt. These bailouts in the end are only pushing the problem out to a later date. The market is bigger than any government thus these bailouts are not going to help the EURO and the overall market over the next few years because price is always goes where it wants to go. The really reason the market crashed last week is because it was “TIME” for the market to do down and “TIME” in the end is always the most important factor for market reversals. The end game is not pretty unless these governments are willing to let the free market decide what should happen. I do realize if they did nothing there would be a lot of pain but at least it would be done within couple years instead just hanging on for the inevitable.