When you get down to it...there’s two waves in action. First, the Greek wave where an entire country was dishonest about revenue and spending, for several decades. Things finally caught up, and they are between a rock and a hard place. No matter how the vote goes on Sunday...Greeks are going to take three or four steps down in life, and the next decade will be a harsh situation for those on minimum income.
The second wave is the rest of Europe riding out a bank crisis which is very similar in nature to the 1929 banking crisis of the US. You could walk into a Spanish bank within the next couple of banks and have a minimum of amount of cash that they’d allow you to withdraw. You want a loan for a new house? Forget about it. You want a loan for a car? You better have half the cash up front and work closely with the dealer.
At the end of this mess....is a strangely stronger dollar (without any true evidence), which harms US imports into Europe for the next couple of years. The US in this case...can only lose.
I’m going to France in October. For those with crystal balls, will the dollar be worth more or less there by then?
Just askin’
Thanks!