Have been reading some interesting articles over the weekend relating to Ireland’s economic problems. The Finacial Times descibed the country as having an‘‘end-of-the-world feeling''. And I also read that they were expecting suicide rates to jump amongst Policemen, plumbers and property developers in Ireland. And although Ireland’s problems have been known about for months that suddenly the media starts reporting all the financial woes. Now if you are the sort of person who believes the world is run by the financial elite who use the media as puppets, then you have the perfect excuse for the financial markets to sell off sharply without panicking your average American that America is in a dire economic state (which of course it is), now the markets can sell off and they can blame it on Ireland’s problems.
The really funny thing about Ireland’s debt is that it was caused by the banks lending it to property developers during the property bubble- the Irish people have absolutely no legal reason to actually give the banks anything- if they said were not paying you the money back because you made stupid bets and lost, there is no legal recourse open to the banks because the Irish people and Government don’t owe the money the contract was between the bankrupt developers and the banks.
Anyway I expect the markets to start going down (this is not a trade recommendation) and lots of noise that it is to do with Ireland (and the other PIGS as they are known), but don’t believe the hype market makers create the sentiment to move them the direction they want them to go in. But as they say “ smart money needs to remain quiet money for it to be real money”
Remember 20% of Americans can’t find America on a map. And if you like to know QE explain in cartoon form:
A Hilarious Animated Take On The Federal Reserve: Xtranormal (VIDEO)