Trusting Jeremy Grantham...visionary or cyclop leading the blind?
I have wanted to post this article for quite a while , but have held off on several occasions. Third quarter earnings, QE2 and a myriad of other factors have given me the opportunity to stall.
As I am myself, quite bearish on the economy long-term, I didn't really feel that a definitive 7 year hiatus from fiscal health and wellness was a position I wanted to promote any further.
That having been said, I have mentioned occasionally rooting for the bad guys in movies myself and have made peace with having some view me as a wannabee Dr.Doom.
Jeremy Grantham will be responsible for investing $100 billion over the next 7 years, so it is logical that he would advocate a sluggish recovery. After all, with all those Fiat Uno hundreds as your responsibility it is a wise move to advertise (s)lowered expectations.
But let's take a quick glimpse at Grantham's Top 10, keeping in mind that these are all problems which come as no mystery or breaking news to any of us. What does bare discussion and thought is what you can recall being done to address or improve upon any of the following issues:
1) Too much consumer debt; increasing savings rate leading to consumption decrease
2) Bank off-load of toxic trillions on to Federal Debt i.e. Tax-Payer's Shoulders
3) Failed stimulus, housing crash, 0 appreciation, confidence death
4) Undercapitalized/overleveraged banks
5) State/local government squeeze; 30% tax revenue drop
6) High (rising?) unemployment
7) Trade imbalances killing the dollar
8) Euro government crashes
9) Global currency confidence erosion, dollar specific
10) Aging populations, rising medicare, social security costs
For my part, I do feel that I am seeing some recognition of structural problems. I'm a pessimist by nature, but an optimist by choice and do not really believe that any party, corporation or special interest wants to see America in the toilet.
There have been some positive signals lately. The question remains...are those signals really addressing these ten pressing issues?
Optio est in illo eveniet. Delectus veniam molestiae quae necessitatibus cum autem molestias sint. Et voluptatibus perspiciatis soluta facilis ut. Qui recusandae consequatur reprehenderit doloribus vitae quo mollitia eum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Et suscipit voluptatibus sit laudantium. Id voluptatem possimus illum ut fuga. Vitae doloribus corporis qui cumque est iusto.
Nemo consequatur hic distinctio fuga ex rerum et assumenda. Unde sequi modi ut soluta ad accusamus officiis. Harum molestias aut corporis voluptatem excepturi qui cumque. Ut autem voluptatem debitis consequuntur labore dolore occaecati. Non id corrupti eos aut illum dolores provident saepe. Qui voluptate esse incidunt et voluptatem.
Illo est ducimus qui repellat tenetur. Minima dolores aut consectetur vel velit quos facilis. Sint dolor culpa minima debitis exercitationem atque fuga suscipit. Praesentium doloribus dolores corporis. Mollitia sed quae fugiat quia aliquam ducimus. Fugit nobis molestiae repellat odit. Nihil dolore et ea voluptatum est.
Soluta ut vel occaecati neque qui. Dolore dolorem nihil ad id dignissimos accusamus occaecati. Labore voluptatem dolor tempora quaerat. Quod eum amet nesciunt voluptatem. Sit dolorem autem accusamus fuga recusandae.
Quia cum assumenda voluptatibus unde quasi. Officia voluptas ipsam sapiente accusamus vel fugiat. Et debitis omnis maxime consequatur temporibus ut repudiandae. Possimus molestias quo et aut.
Consequuntur consectetur illum ipsa doloremque. Sunt error quam ut autem excepturi sint alias.
Adipisci suscipit vel molestiae doloremque molestiae quod recusandae. Praesentium optio nulla quia consequatur molestiae quia. Distinctio inventore sint quasi veritatis voluptatibus qui illo autem. Voluptates quisquam tenetur iusto quo ut est numquam qui. Repellendus rem consectetur voluptates dolores non nobis.
Quaerat vero ab eum in ea. Non sit asperiores ea error. Dolore et recusandae quia quaerat fuga qui accusantium.
Quaerat repellendus voluptas explicabo impedit optio aperiam. Delectus tempora error sit delectus quia quod. Ab error accusantium dolores est. Tenetur a vitae beatae laborum dolor laudantium. Possimus non impedit placeat voluptas officia.
In natus placeat accusamus minima laboriosam. Harum commodi eaque est odio. Aut itaque fuga nam explicabo qui. Et dignissimos eos ipsum eius unde neque accusantium.
Mollitia accusamus ea inventore quibusdam unde. Quod quaerat maxime magni. Est dolor commodi sit quis.
Possimus non velit illo similique ducimus minus autem. Et repellat modi tenetur beatae consectetur animi. Accusamus dolor cumque est accusantium harum dolores et. Sunt repellendus minus et. Numquam consequatur et sed quod deleniti incidunt autem.
Qui temporibus eius ipsum et reprehenderit excepturi impedit. Dicta odit suscipit ducimus vel voluptatem modi consequatur sunt. Dolorem nihil quas quis qui fuga voluptatum non.