Cue the doomsdayers in 5...4...3...2... They 'told you so' for the past year as the Dow climbed to 17,000.
Obama's media is reporting "accounting irregularities." It is just a late payment. Nothing to see here.
Here is what I know: Both sources for economic news are wrong.
I read both daily and try to find the truth. I have yet to find a reasoned, objective and responsible source for financial news. If such a source existed, professional investors wouldn't hedge. Right?
The doomsdayers are in the Thesaurus everyday talking about "____ spiking" here or "bank contagion" there. Here are some words, phrases and quotes found on Zerohedge's home page just now:
overall funk, global disaster, hopes fade, biggest miss, tumbles, gold surges, Europe is broken again, insolvency, whole charade, Europe is collapsing, contagion is spreading, record low, bubble, it's beyond a bubble, American police state, fiefdom, government tyranny, corruption and control...Not the source for objectivity by any means, but the blind squirrel at ZeroHedge does find a nut every now and then. As do the optimists in the mainstream finance outlets.
Here is a graph from MarketWatch. Up is bad. But 4%? Up from 3.5%? Not bad at all. Not panic-worthy, assuming Portugal can afford to make its payments at 4%. No one has the answer to that.
There is no media or blog source that can answer our questions accurately, because they'd all be dismissed as fools. Who is going to answer these questions and retain credibility: Is this decline reversible? What is the point of no return? What defines "collapse." When will it happen? What will it look like? What are the likely (not desired) remedies the government will attempt? Etc.
And here is the question du jour, albeit hypothetical: what will happen if it becomes fashionable for banks and nations to skip loan payments?
One little gem I found in my current studies of the gold standard: Hong Kong has no debt.
What a novel concept.