More than enough ink has been spilled on this from the mainstream financial media. However, I do think we there are a few key takeaways we should note from this whole debacle.
1)Elements of the financial media is either unbelievably lazy or completely complicit in helping to maintain the illusion of success for the Centralized powers (large governments and Central Banks).
2)The political class and Central Banks are unable to resolve debt issues in any meaningful way.
3)The real �bottom� or level of �price discovery� is far lower than anyone expects due to the fact that the run up to 2008 was so rife with accounting gimmicks and fraud.
Regarding #1, it is worth noting that the Greek Crisis actually first started in 2009 when the country�s credit ratings were cut by all three credit rating agencies: Moody�s, Standard and Poor�s, and Fitch.
The first actual request for a Greek bailout came in April 2010, over five years ago. Since that time, Greece has received two formal bailouts, its credit ratings have been dropped to �junk,� and its GDP has collapsed over 20%: an amount roughly equal to the economic collapse experienced by Argentina during its 2000-2001 crisis.
Throughout this entire process, the financial media media has run thousands of articles proclaiming the Greece crisis was �over� or �fixed.�
These are the more blatant headlines� however the entire five years period was filled with claims that the debt issues were contained if not easily fixable.
Usually the article featured an anonymous �official,� but as the below article shows, even Finance Ministers were willing to go �on the record� proclaiming that the EU had weathered the worst of the debt crisis storm:
The worst is over in the euro crisis, German Finance Minister Wolfgang Sch�uble said on Friday, praising Greece and expressing confidence that France would master its problems.
Asked if the euro crisis would continue to worsen in 2013, Sch�uble told German daily Bild: "I think we have the worst behind us. Countries like Greece have recognized that they can only overcome the crisis with hard reforms. I hope the progress will continue. We are moving ahead step by step."
Reviewing the above headlines (or thousands of others like them)� one is reminded of what current EU President Jean-Claude Juncker once stated, �what it becomes serious, you have to lie.�
Unfortunately for investors who use the news as a source of information to guide their investment decisions, the financial media was an all-too willing accomplice for the Central Banks and statist types. Which returns us to point #1 in our list above:
1)Elements of the financial media is either unbelievably lazy or completely complicit in helping to maintain the illusion of success for the Centralized powers (large governments and Central Banks).
This has caused no shortage of harm to investors betting on Greece�s recovery. Greece�s stock market lost 85% during the first round of its financial crisis. The recovery rally peaked in 2014 right before it became clear that the first bailout hadn�t solved much of anything. Since that time, the Athens stock exchange has fallen another 52% with no indication of a bottom.
What does this tell us?
That the debt issues which lead to the 2008 Crisis as well as the 2012 EU Crisis have not been resolved. All the Central Banks have done is pave the way for even bigger crisis� a crisis that will involve entire countries, not just banks, going bankrupt.
If you've yet to take action to prepare for this, we offer a FREE investment report called the Financial Crisis "Round Two" Survival Guide that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.
We are making 1,000 copies available for FREE the general public.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.