I meant to post something Sunday night or Monday morning on CAPM and Warren Buffet’s letter to shareholders, but I’ll get to that soon.
Right now, the most prominent news is that S&P has official rated Greek debt to be in selective default. In my previous post, I had mentioned how Greece was having problems collecting taxes. Also I mentioned this was beginning to spread into other countries, specifically the UK.
While taxes may not be the only source of revenue, it goes to show that some countries need to be more aware of their financial situations. I brought up the UK as an example because I saw an article on it. Last August, S&P had downgraded US debt, not because of our ability to pay but more on where the funds were coming from.
Now I’m not saying the US is having the same problems as Greece. In Greece, people are protesting out on the streets about wage reductions while the politicians are freaking out trying to figure out what to do. In the US, we have people complaining about a 99% and the politicians are going through the same motions. Not freaking out, but certainly much closer to a solution than in Greece, as long as people can get their egos checked.
That being said, I have a much more positive outlook here as long as people are willing to collaborate and compromise.