Latest Blog Post from  NAAIM Member Paul Schatz:

With Monday’s blog and Street$marts being on the long side, I decided to wait a day to offer commentary on how the markets’ reaction to the impending default by Greece, bank closure, referendum, etc. would impact the new month and quarter. To reiterate an important market tenet of mine which has been around for decades, it’s not what the news is, but how the markets react. We are constantly reminded of that with economic news. Is good news bad news for stocks? Is bad news good news? Is good news good news? Is bad news bad news?

I have already written for years that my personal belief is that Greece should leave the Euro. If Greece was the size of Spain or France, the conversation would be very different as those countries are too big to fail and almost too big to save. Greece’s economic output and contribution to the Euro is barely noticeable. Their political system, while democratic, leans heavily socialistic and even more so than most of their European counterparts. Greece has a culture of tax avoidance, fiscal irresponsibility and gross overdependence on the welfare state. It’s not working now; it hasn’t worked in the past; and won’t work in the future. Talk about doing the same thing over and over and over, but expecting different results! That really is insanity!!

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