So far outside the box you can't even see the box from here.
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Wednesday, August 5, 2015
This is one I haven't seen before. Apple is so big that if it has a financial downturn it will take the whole market with it.
Now I would have thought Puerto Rico's inability to pay its debt would be big story about market threats. Maybe Apple is bigger than Peurto Rico.
We used to think the Greece situation was dire. It is, but the story has been pushed to the back burner as the EU fix is in. The "solution" is a temporary papering over of a financial mess that cannot be fixed.
Of course, there are other countries that are almost as in as much debt trouble of Greece -bigger countries that will have more geopolitical impact. Italy and Spain come to mind, but really, the whole EU has issues.
By rights, if there was going to be any sort of an economic boom it would be now. Petroleum prices are lower than they've been in some time. That should be a major economic boost. The fact that we are still just muddling along says something. When the economy takes a big downturn, the whole petroleum sector will really go in the dumpster.
Then anything can happen. In fact, we could then reach a point where energy prices sore, even during a major recession or even a depression. The energy sector could suffer so much damage that it might be unable to supply even a greatly reduced market.
Will this all happen? When will it happen? If I could answer those questions with any precision I'd be a rich man indeed. What I can say is that it would be very imprudent to assume things will keep chugging along the way they are. At the very least, look at your situation and figure out how vulnerable you are to financial fluctuations.
The Great Depression is almost no longer in living memory. When we forget the past is when we repeat it.
I live in an area of NH known as the Great North Woods. I'm in my dome-i-cile out in the county with my lovely wife and a varying number of family and friends
-part red neck, part hippie but all country. Experimenting and enjoying the adventure of life.