Dear ,
Me Too!!!
Unfortunately the fact that we are tired of hearing about it is irrelevant. If you care about your money you better pay attention to this issue because it isn't getting any better and it WILL affect your finances in the US.
It was another brutal week for stocks as fears related to Europe's debt situation dominated headlines. According to CNBC, the S&P 500 logged its worst Thanksgiving week since 1932. Ouch! For the week, the S&P 500 fell 4.7%, giving back almost two-thirds of its October gains.
Here are some headlines from over the weekend.
Britain draws up emergency plans for collapse of Euro after warnings Italy needs £500bn bailout
http://www.dailymail.co.uk/news/article-2066862/Britain-draws-emergency-plans-collapse-Euro-warnings-Italy-needs-500bn-bailout.html#ixzz1exLWa01r
IMF drawing up £517bn package to save Italy, Spain and the euro http://www.telegraph.co.uk/finance/financialcrisis/8919470/IMF-drawing-up-517bn-package-to-save-Italy-Spain-and-the-euro.html
Germany, France plan quick new Stability Pact: report http://www.reuters.com/article/2011/11/27/us-eurozone-integration-ecb-idUSTRE7AQ00F20111127
Time Runs Short for Europe to Resolve Debt Crisis http://www.nytimes.com/2011/11/28/business/global/pressure-builds-in-europe.html?_r=1&partner=MYWAY&ei=5065
Nothing will stop us from striking: Two thirds of schools to shut, airports set for chaos, Army on standby - but unions won't discuss a last-minute peace deal http://www.dailymail.co.uk/news/article-2066955/Nothing-stop-striking-Two-thirds-schools-shut-airports-set-chaos-Army-standby--unions-wont-discuss-minute-peace-deal.html#ixzz1exRMjx6N
Toomey: Congress Still Can Adjust Triggered Cuts
http://www.newsmax.com/InsideCover/Toomey-supercommittee-cuts-Obama/2011/11/27/id/419164
Euro Climbs on Report of IMF Italy Loan Plan http://www.moneynews.com/StreetTalk/euro-italy-imf-loan/2011/11/27/id/419183
Monti Says Merkel, Sarkozy Agree Italy Fall Would End Euro http://www.moneynews.com/StreetTalk/Merkel-Sarkozy-italy-Euro/2011/11/25/id/419087
'Awful' Italy Debt Sale Heightens Eurozone Stress http://www.moneynews.com/StreetTalk/Italy-Debt-Eurozone-Stress/2011/11/25/id/419085
Greeks Want Investors to Take Bigger Losses as Creditor Talks Start http://www.moneynews.com/FinanceNews/Greeks-investors-losses-bigger/2011/11/25/id/419100
Greece Needs More Austerity to Hit Targets http://www.moneynews.com/Economy/Greece-Austerity-Targets/2011/11/25/id/419099
But I'm still tired of it!
Me too. So even though there are several things that I'd like to comment on in the headlines above, it'll wait for another time. Let's move on to something else.
Occupy Wall Street


You may recall that we brought the Occupy Wall Street story to your attention way back in August, before it even started. I had seen a couple of small online stories about this protest that was being planned and I suggested that you keep an eye on it. One of the main tenants of this protest seems to be a very anti-capitalist bent.
I thought it might be good to take a look at capitalism. Is it a good thing, a bad thing, a neutral thing? I happen to believe that capitalism is the best economic system ever used in the world so far. Is it perfect? Nope, but I believe that it has brought more benefit to the widest group of people than any other system out there.
Now I could write in great depth about my beliefs in and about capitalism but instead of doing that I want to bring an article to your attention that makes many of the points I'd make, and makes them very well.
"What would you rather be? King of England in 1263 or you?"
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My daughter Leah was privileged to graduate from Hillsdale College with a degree in Economics. One of her favorite professors was Dr. Wolfram. In fact she used to baby sit for his kids.
One of the things she liked about him as a professor was his ability to make things understandable. I think you'll see what she meant if you read the article. Here is an example.
Every semester I ask my students: "What would you rather be? King of England in 1263 or you?" Turns out, students would rather be themselves. They enjoy using their iPhone, indoor plumbing, central heating, refrigerators and electric lighting. All of these things are available to the average person in America today and none of them were available to the aristocracy when the West operated under the feudal system.
How is it that for thousands of years mankind made very little progress in increasing the standard of living and yet today half of the goods and services you use in the next week did not exist when I was born? It wasn't that there was some change in the DNA such that we got smarter. The Greeks knew how to make a steam engine 3,000 years ago and never made one. The difference is in how we organize our economic system. The advent of market capitalism in the mid 18th century made all of the difference.
I would highly encourage you to read the rest of the article and then forward it to others to read. You can read the rest of the article here:
http://tinyurl.com/6syr6wc
Until next week folks, protect your assets!!!
ECONOMIC CALENDAR: Monday - New Home Sales Tuesday - S&P Case Shiller, HPI, Consumer Confidence Wednesday - ADP Employment Report, Productivity and Costs, Chicago PMI, Pending Home Sales Index, EIA Petroleum Status Report, Beige Book Thursday - Motor Vehicle Sales, Jobless Claims, ISM Manufacturing Index, Construction Spending Friday - Monster Employment Index, Employment Situation Report
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