Greece Debt Crisis Coming to a Neighborhood Near You?
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Thread: Greece Debt Crisis Coming to a Neighborhood Near You?

  1. #1

    Exclamation Greece Debt Crisis Coming to a Neighborhood Near You?

    And we have a Usurper in the White House that has seen the National Debt triple sense ascending to the throne. Got to love that hope and change.


    FOXNews.com - Greece Debt Crisis Coming to a Neighborhood Near You?
    Greece Debt Crisis Coming to a Neighborhood Near You?

    FOXNews.com

    Some lawmakers and analysts are sounding the alarms over America's fiscal policies and deficits, warning that Greece's financial crisis could be coming to neighborhood near you.


    AP

    May 6: A protestor gestures to the riot police officers as they stand outside the Greek parliament during an anti government rally in Athens.

    Until its day of reckoning arrived this week, Greece lived for years beyond its means, borrowing money and spilling red ink to finance excessive government spending, offer socialized health care and provide lavish wages for federal workers.

    Sound familiar?

    Some lawmakers and analysts are sounding the alarms over America's fiscal policies and deficits, warning that Greece's financial crisis could be coming to a neighborhood near you.

    "I'm very concerned we're headed down the same path as Greece," Rep. Cathy McMorris Rodgers, R-Wash., told Fox News. "Greece found itself in a situation where its public debt was 113 percent of its GDP. They had taken on all this debt, expanded programs and America is headed down the same path.

    "If governments don't start tightening their belts, implementing balanced budgets and prioritizing and start saying we can't afford these bailouts for everyone, I don't see where it's going to stop," she said.

    Greece is buckling under a debt burden of $388 billion, which is bigger than its $356 billion economy. Greece was facing a May 19 due date on debt it said it couldn't repay without a bailout. So Greek lawmakers voted Thursday 172-121 to approve austerity measures insisted upon by the EU and IMF worth about $38 billion through 2012 – that will slash pensions and civil servants' pay and further hike consumer taxes.

    In the United States, the federal government is in debt about $12.3 trillion, which is roughly 80 percent of the nation's $13.3 trillion economy.

    But some economists aren't worried that America will suffer the same fate as Greece.

    "The United States government is a currency-issuing nation, our debts our denominated in dollars, we control the dollars," said economist Mike Norman who noted that Greece's debt is denominated in euros without the ability to create euros. "So it's functionally like a state in the United States or me or you or anybody else who's strapped for cash. If it doesn't have it, it doesn't have it."

    "So the question of solvency or going broke or not having the money, as the congresswoman said, is totally inapplicable," he said.

    But J.D. Foster, a senior fellow in economics at the Heritage Foundation and a former economist in the Bush administration, told FoxNews.com that America is headed toward its own Greek tragedy if it doesn't tackle its fiscal problems.

    Foster said it's unlikely that the U.S. would try to inflate its way out of its debt. "Frankly it doesn't work and it's a self defeating approach," he said. It helps that the world's reserve currency is the dollar, he said. But he added that if bond investors lost trust in the U.S. like they did with Greece, the dollar will not save the country.

    "I think what is more likely to happen is we are headed toward a crisis and we'll deal with it, either be enacting a large VAT (value added tax, or national sales tax) or not enacting a VAT and slash spending back. But one way or another, we'll address the situation. The problem with Greece,
    By faith Noah,being warned of God of things not seen as yet, moved with fear,prepared an ark to the saving of his house;by the which he condemned the world,and became heir of the righteousness which is by faith Heb.11:7

  2.   
  3. #2
    wolfhunter Guest
    Quote Originally Posted by HK4U View Post
    And we have a Usurper in the White House that has seen the National Debt triple sense ascending to the throne. Got to love that hope and change.


    FOXNews.com - Greece Debt Crisis Coming to a Neighborhood Near You?
    Greece Debt Crisis Coming to a Neighborhood Near You?

    FOXNews.com

    Some lawmakers and analysts are sounding the alarms over America's fiscal policies and deficits, warning that Greece's financial crisis could be coming to neighborhood near you.


    AP

    May 6: A protestor gestures to the riot police officers as they stand outside the Greek parliament during an anti government rally in Athens.

    Until its day of reckoning arrived this week, Greece lived for years beyond its means, borrowing money and spilling red ink to finance excessive government spending, offer socialized health care and provide lavish wages for federal workers.

    Sound familiar?

    Some lawmakers and analysts are sounding the alarms over America's fiscal policies and deficits, warning that Greece's financial crisis could be coming to a neighborhood near you.

    "I'm very concerned we're headed down the same path as Greece," Rep. Cathy McMorris Rodgers, R-Wash., told Fox News. "Greece found itself in a situation where its public debt was 113 percent of its GDP. They had taken on all this debt, expanded programs and America is headed down the same path.

    "If governments don't start tightening their belts, implementing balanced budgets and prioritizing and start saying we can't afford these bailouts for everyone, I don't see where it's going to stop," she said.

    Greece is buckling under a debt burden of $388 billion, which is bigger than its $356 billion economy. Greece was facing a May 19 due date on debt it said it couldn't repay without a bailout. So Greek lawmakers voted Thursday 172-121 to approve austerity measures insisted upon by the EU and IMF worth about $38 billion through 2012 – that will slash pensions and civil servants' pay and further hike consumer taxes.

    In the United States, the federal government is in debt about $12.3 trillion, which is roughly 80 percent of the nation's $13.3 trillion economy.

    But some economists aren't worried that America will suffer the same fate as Greece.

    "The United States government is a currency-issuing nation, our debts our denominated in dollars, we control the dollars," said economist Mike Norman who noted that Greece's debt is denominated in euros without the ability to create euros. "So it's functionally like a state in the United States or me or you or anybody else who's strapped for cash. If it doesn't have it, it doesn't have it."

    "So the question of solvency or going broke or not having the money, as the congresswoman said, is totally inapplicable," he said.

    But J.D. Foster, a senior fellow in economics at the Heritage Foundation and a former economist in the Bush administration, told FoxNews.com that America is headed toward its own Greek tragedy if it doesn't tackle its fiscal problems.

    Foster said it's unlikely that the U.S. would try to inflate its way out of its debt. "Frankly it doesn't work and it's a self defeating approach," he said. It helps that the world's reserve currency is the dollar, he said. But he added that if bond investors lost trust in the U.S. like they did with Greece, the dollar will not save the country.

    "I think what is more likely to happen is we are headed toward a crisis and we'll deal with it, either be enacting a large VAT (value added tax, or national sales tax) or not enacting a VAT and slash spending back. But one way or another, we'll address the situation. The problem with Greece,
    Did Mr. Norman just say we can't go broke because we can print more money?

  4. #3
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    Letter from Chuck


    The fact that almost daiy, We see several acticles posted by a few folks containing FUD. (Fud may refer to: Fear, uncertainty and doubt) I don't understand their motive. HK, you are a frequent FUD poster. Didn't u state you were a LEO for several years? So much for Protect & Serve? IMO, it is anoying, and causes more harm then good.

    Here is a letter from my money people that may put a more informative, and positive spin on this issue of extreme monetary concern. From Charles Schwab Investment Advisory (CSIA) Portfolio Managers for Schwab Managed Portfolios™


    Since late April, global markets have reacted to the debt crisis in Greece, with investors worrying that the euro region could be on the verge of default. As is often the case with a financial crisis, this one started off as a relatively isolated event focused on whether the Greek government would be able to finance its maturing debt. Subsequent delay on the part of European Union (EU) officials in devising a cohesive plan to address Greece’s issues fueled further market uncertainty, causing investors to worry that Greece’s woes might spill over into other European markets and even the global economy.

    At the heart of the ongoing turmoil is market hesitancy over whether bailout proposals currently under consideration by the EU and the International Monetary Fund will be potent enough to curb erosion in Europe’s credit standing.

    Looking ahead

    While we expect a peak in the uncertainty surrounding Europe to occur soon, we also think that further market turbulence is likely to occur. Given the concern surrounding these events, we’d like to share how we are managing Schwab Managed Portfolios – Mutual Funds during this period of market volatility—and provide our thoughts on what you might expect going forward.

    How we’re controlling risk through broad diversification while looking for opportunities to outperform

    No one has a crystal ball that lets them predict, with perfect accuracy, what asset classes will perform best. With that in mind, Schwab Managed Portfolios – Mutual Funds is designed to provide you with well-diversified exposure to a wide variety of assets—including large- and small-cap U.S. and foreign stocks, bonds, and cash—while trying to outperform the markets without too much risk of underperforming the benchmark.

    Through May 6, 2010, all Schwab Managed Portfolios – Mutual Funds models have posted positive absolute performance since the start of the year. On a relative basis, the models’ performance has been in line with, although in some cases below, their blended market benchmarks, even after taking program fees into consideration.* Note, however, that riskier sectors led the market through May 6, 2010, before the Europe crisis. This is an important distinction because Schwab Managed Portfolios – Mutual Funds tend to hold mutual funds whose managers seek to outperform their benchmarks through stock picking and focusing on investment fundamentals. As a result, your portfolio will generally hold higher-quality investments than the market benchmarks they are measured against.

    Based on the most recent published holdings, the mutual funds selected for your portfolio currently have a lower allocation than their respective benchmarks to vulnerable countries within Europe (such as Greece, Spain, and Portugal) and a higher allocation to comparatively more stable countries in Europe (such as Germany) and Canada. The mutual funds selected for your portfolio tend to have a quality emphasis that is also apparent in their sector holdings; our mutual fund managers currently tend to have a smaller allocation to vulnerable areas such as European banks.

    This investment approach has helped relative performance in the immediate aftermath of the Greek fallout, as all strategies have dropped less than their blended benchmarks. Going forward, we expect that the managers of the types of actively managed mutual funds that we hold will find more opportunities to use security selection to add value in the event that the market becomes choppier.

    Staying focused on the long term

    Often in times of market declines, there is an inclination to overreact. While this is understandable from a psychological perspective, it can have negative consequences for your investment portfolio. History has shown that it is extremely difficult to predict when a market will continue to decline and when it will rise. Many investors who sold after 1987’s Black Friday, or during the sharp decline experienced during the credit crisis of 2008–2009, and then stayed on the sidelines missed the subsequent recoveries. Typically, the stock market recovers well before the economy itself starts turning around. Because the market tends to rebound more quickly, trying to time entry into the market by waiting for the all-clear sign can mean that you’ll miss some market gains.

    CSIA supports Schwab’s long-standing investment philosophy: Establish a long-term asset allocation plan that takes into account your tolerance for risk, current needs, and future objectives; then stick with it. It’s important for you to revisit your objectives on a regular basis due to potential changes in the financial markets and in your personal circumstances. Doing so will provide you with the confidence to stay on track with your investment plan.

    Thank you for choosing Schwab Managed Portfolios to help you reach your financial goals. As the portfolio managers for Schwab Managed Portfolios, we value the trust you have placed in us. If you have any questions, please contact your Schwab Financial Consultant or the Schwab Managed Portfolios service team at 877‑316‑6400. Schwab investment professionals are available to help.

    James D. Peterson, Ph.D.
    Vice President, Chief Investment Officer
    Charles Schwab Investment Advisory, Inc.

  5. #4
    mojo Guest
    It seems some folks just never get it........the path we are now being placed on is the same one Greece has been traveling for years....pull your head out and quit trying to see how many times you can say FUD in your responses. It is apparent that you are nothing more than a waterboy (not ice) carrying the bucket for barry.

  6. #5
    Gee a broker puts a positive spin. I am totally surprised that he would paint a picture through rose colored glasses so that blind,deaf and dumb sheeple that he makes money off of will kept investing and kept him able to drive his fancy car. mojo you are exactly right. Some will never get it. They are like the Alfred E. Newman guy in the old Mad Magazine. "What me worry". As far as the word FUD when a sheeple comes upon a new word for their limited vocabulary they have to work it to death.
    By faith Noah,being warned of God of things not seen as yet, moved with fear,prepared an ark to the saving of his house;by the which he condemned the world,and became heir of the righteousness which is by faith Heb.11:7

  7. #6
    Quote Originally Posted by HK4U View Post
    Gee a broker puts a positive spin. I am totally surprised that he would paint a picture through rose colored glasses so that blind,deaf and dumb sheeple that he makes money off of will kept investing and kept him able to drive his fancy car. mojo you are exactly right. Some will never get it. They are like the Alfred E. Newman guy in the old Mad Magazine. "What me worry". As far as the word FUD when a sheeple comes upon a new word for their limited vocabulary they have to work it to death.
    +1 HK. Big surprise for sure. The economies worldwide are intricately tied together. The Greece of today is our economy in the future. IMO we will see a domino effect in the near future, with the economy of one country after another collapsing. All of this is setting the stage for One World Order (translate: One World Government, One World Religion and One World Currency), as predicted in the Bible.
    Conservative Wife & Mom -- I'm a Conservative Christian-American with dual citizenship...the Kingdom of God is my 1st home and the U.S.A. is my 2nd.

  8. #7
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    Economy 101, you can't spend more money encouraging people to be non productive and discouraging people to be productive and survive for very long. Remember during the last administration we were told the economy was in the tank while unemployment was less than 5 percent and the stock market was going through the roof. Now the unemployment is near 10 percent and the stock market is tanking and the economy is in a strong recovery. Got to love progressive economics.
    "You can get a lot accomplished if you don't care who gets the credit" - Ronald Reagan

  9. #8
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    Quote Originally Posted by Conservative Wife & Mom View Post
    +1 HK. Big surprise for sure. The economies worldwide are intricately tied together. The Greece of today is our economy in the future. IMO we will see a domino effect in the near future, with the economy of one country after another collapsing. All of this is setting the stage for One World Order (translate: One World Government, One World Religion and One World Currency), as predicted in the Bible.
    To the Doomsday preaching bible beating prophets; Let me ask, where do you keep your money? In your mattresss? You send it to God? Wait, I am assuming you have something to invest. .

  10. #9
    mojo Guest
    Since I consider myself to be an average Christian, I will tell you what I do, considering you said: "Doomsday preaching bible beating prophets" I will take a wild guess and say that includes me. I do have money to invest, as I would say most Christians do,(dispite your snarky comment) and I consider one of the greatest investments I make to be my tithe. so to respond to part of your rant yep I give money to God. Going on, I too asked my "money man" from Hilliard Lyons what he thought I should be doing......this was just prior to the collapse because I sensed something was not right and he said all is well; you are invested in a broad spectrum of available offereings, you are split in %ages that look good and safe, remember the market does this kind of thing all the time. His response to me, so similar to what you say your guy told you that one might think they are the same guy!
    Well I lost a boat load.......as did a lot of people. Had I listened to that small still voice and my gut I would have moved my money where I "felt" it should have gone and today I would be far ahead of the game. Noone is saying the market doesnt do what it does and this wasnt another "gulp". America today is different with almost no manufacutring to fall back on and being that we are closer to an actual world economy than not, it is very important how Greece ( Spain, France et al) got into the spot it is in now and sadly, we are it seems headed there taking the same road and learning no lessons.
    So to those who are apologists for this administration and think nothing is wrong in how it is dealing with our nation and nothing is going on........thats what the "money guys" of the 30's said right before the Great Depression. BTW....no money in my mattress, no room with all the ammo

  11. #10
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    Funny how they can dish it out, all in the name of the lord.
    But when it comes back their way, its "snarky"

    Enough of this.

    I graduated junior high, a very long time ago.

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