Today’s Financial Markets

The European Debt Crisis

Let’s get one thing clear:  every developed economy has a debt crisis. In future blogs, I’ll write about Japan’s debt crisis, which is rumbling faintly like a distant storm, but will likely make landfall sometime in the next few years with a thunderous crash. And the U.S. shoved its debt crisis off center stage while the election played out, but everyone knows that’s temporary—this behemoth can’t be ignored for long. But this blog’s about Europe’s debt crisis, which has unique characteristics and challenges. Unique Characteristics The unique characteristics are that the nature of the debt problem of each European country is […]

The Current Market Environment

Sometimes we can only identify the distinctive characteristics of a particular economic environment after that period has passed. But sometimes we’re able to recognize those distinctive characteristics at the time. For example, it was pretty obvious by 1999 that we were experiencing a euphoric, tech-driven, stock-market boom. No one could say when it would end, but anyone who’d studied capital market history knew that sooner or later this boom was bound to bust, inflicting huge losses on those who were just then leaping onto the tech bandwagon. So what about today? Can we diagnose what ails us now? Unfortunately, yes. Studies by McKinsey, the IMF and, […]