Posted in: Mr. Tito
Tito's Money - The European Bailout of Banks - $639 Billion! Yikes!
By Mr. Tito
Dec 21, 2011 - 8:16:09 PM

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So struggling European banks drawing from 439 billion in Euros ($639 billion in U.S currency) made fresh by the European Central Banks is an indication of health, right? It might make for an interesting bet as to which fails first? A European Union member (one of the "PIIGS") or a European bank fully financing a EU member's excessive debt? Either way, it's as I said the other day...

You CANNOT solve a DEBT problem with MORE DEBT.

Meanwhile, here in the United States, the political "dick measuring contest" continues... I actually agree with the Republicans about the 2 Month Payroll Tax being BS, as making something at least a year provides some measure of certainty... However, I'm still waiting for the House Republicans of 2010 to grow some sack on the Budget. You heard a ton about Deficit Spending during the whole "Debt Ceiling" debate, but you haven't heard squat since.

As "credit worthy" as the United States might appear to be as a nation, borrowing $1 Trillion per year is NOT healthy for any economy, even if you're a lover of Keynesian Economics (i.e. use Government spending to "stimulate" the economy during a recession). Nobody in Washington even has the balls to reduce any part of the 3 "Sacred Cows": (1) Military Spending, (2) Social Security Retirement, and (3) Medicare/Medicaid. Those are the 3 biggest pieces of our budget and each have of a ton of politics behind them.

Stocks were down much of the day, surprise surprise, with a mixed bag of news in the world and strangely, some issues in the technology sector.

In these times, I like Mutual Funds (spreads the risk) and investing in traditional stocks (always a use for Johnson & Johnson products, for example). Invest wisely...

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