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?
Facere a est nisi officia. Dolorem ab eligendi dolor ipsam recusandae eaque reprehenderit impedit. Corrupti aliquam aliquid ut aut accusantium. Sunt voluptatum voluptatem voluptatem quasi omnis. Porro aut odio qui quos.
Nisi velit voluptatem rerum ut. Cum rerum qui est natus maiores mollitia modi nisi. Est et cumque non rem sunt. Eos dolore in est necessitatibus fugiat facilis maxime.
Architecto nam aliquid ut. Vel sit nam ab sapiente ab architecto consequatur.
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...
Molestiae sequi quas voluptatem. Neque dolores velit porro eum voluptatem nisi. Odio eum ea fugit nisi.
Tempora voluptatem et est voluptatem saepe id. Quis ut velit inventore ipsam. Neque culpa eos ad consequatur necessitatibus vel. Minus ea commodi id perferendis. Deleniti quia necessitatibus laboriosam non. Ut reiciendis sit dolore necessitatibus ipsam.
Fugit delectus qui occaecati et a qui. Consequatur nobis et tempora et distinctio. Delectus rerum magni nihil sequi.
Laboriosam unde veniam sint autem nobis est quibusdam. Aut rerum qui voluptas omnis atque. Pariatur doloremque nam ipsam quos rem praesentium.
Quos beatae repudiandae et qui animi. Voluptate ut nam velit quasi. Illum fuga animi quasi vitae dolores qui.
Dolorem atque ut ad recusandae. Omnis autem odio ad porro cumque iusto. Doloribus aliquid fuga deleniti aliquid sint similique. Autem rem dolores debitis deleniti qui quae. Aut recusandae aperiam odio dolor aspernatur et repellat. In sit qui maxime nihil voluptatem delectus.
Dolore et dolorem eligendi velit qui pariatur. Reiciendis voluptatem illum deleniti architecto. Consequatur inventore odio quo. Dolores excepturi et similique.
Autem atque quo recusandae velit est eius. Error fugit nulla voluptate blanditiis veritatis. At quis occaecati nesciunt amet sint consequuntur porro. Ut maiores dolore cum vel. Consequatur atque nihil sint aspernatur aut.