Yea Europe!

So it was announced over the weekend that France and Germany agreed on a plan to “recapitalize” their banks, opening the way for another bailout of Greece.  “Recapitalize” is another word for bailout, which consists of printing money to give to the banks to keep them from going under.  Didn’t Europe already bailout Greece earlier this year?  And yet here we are again.

And I think you can count on that continuing.  If you don’t fix the underlying problem, then the problem will just keep coming up again and again.  This agreement doesn’t fix anything.  It just buys them more time.  The stock market is headed up today on this news.  But I wouldn’t get back in the stock market until they actually begin to address the underlying problem.

They didn’t stop the bleeding.  All they did was put a band-aid on the wound.

Which brings me to my next issue.  The financial media is reporting this as a great thing – Greece and the European banks are now okay.  I would suggest you quit reading the main stream media.  These guys don’t report correctly.  The news you need doesn’t get printed and the news that does get printed is usually heavily slanted toward the viewpoint they wish you to have.  I’m getting my news mainly off the internet now where I feel much more confident in getting the true news.

And lastly, did you read the bit about the Bank of Japan printing up more yen for the Japanese.  I’m not sure how much, but the word quadrillion comes to mind.  Japan has been doing this for year to no avail – their economy continues to sputter like it has since 1988.  You probably didn’t see the news because of the timing of the news release.  It was announced on the same day Steve Jobs died.  Why?  Japan doesn’t want anyone to know.  This is highly inflationary action.