Karl's Log, Default Date 070615

Ushanka is not a forward-looking blog.  I'm not that smart.  (I went to public government school.)

Nor am I qualified to even be labeled a novice at financial markets.

I am smart enough, however, to recognize the small and lazy minds of liberals.  (They were my teachers.)  And I'm smart enough to record it so we can look back one day and see the MSM's default road map when a default is closer to home.

Today's MarketWatch home page:

The Dow recently hit 18,351.  That is a massive number in the Obama era.  Just watch my last precious metals video to see what your return could have been if you had been 'all-in' on the Dow.  It is at 17,600'ish now, and even the optimists are running for the exits.  The Dow is still in record territory, valuations are still inflated by any measure, and any long-term investor in the market today should be ecstatic.

For comparisons, just look at the indexes in China. Down 25% in the past couple weeks.  That equates to a 13,200 Dow.  Ouch.

The 0.60% drop today is being blamed on Greece.  Yet, there is zero direct exposure of US equities in a Greece default unless a US corporation invests in Greek bonds.  Name one.

In fact, one has to work at it to get any exposure to the Greek default.  Greece amounts to less than 2% of the Euro zone.  And this day of reckoning was obvious to everyone including corrupt Democrats like Jon Corzine.  Paying off the Greek debt or reducing expenses within reach were NEVER part of the 2+ years of negotiations and bailouts.  We don't need hindsight to know how this was going to end.

If the market goes down again tomorrow, the MSM will blame Greece.  If down on Wednesday: Greece.  Thursday: Greece.  In fact, Greece will be the scapegoat until some other easy excuse comes up.  Why?  Because the MSM, even the financial media, are A) lazy and B) are tasked to spin negative news while a Democrat is in the White House.  And to admit that daily fluctuations and cycles are natural in a public market would be admitting that they have no expertise whatsoever and that they add no value.

If/When economic distress comes here, we should plan to see the MSM throw their darts of blame willy nilly once again. 

For example:

The $2T annual ObamaCare hit: no dart.  Tea Party: dart. 
$800B Stimulus that did not stimulate: no dart.  Racists whites: dart. 
Doubling the deficit and tripling the debt: no dart.  Banning unions from mandatory paycheck dues collection: dart.