Economics Lesson

I do not do this often, and I will try and keep this simple.

Greece may default on their debt to European banks this week. They may also leave the euro currency ( hideous money, looks like monopoly money unlike the British Pounds) and go back to the old Greek drachma.

To which you may say...." Why should I in East Texas give a good shit?"

Here's the problem. If the Greeks default, Portugal, Spain, Italy will do the same and go back their money.

Economists are not sure if the banks in those countries will survive.

Once again, one of the big things that cause the start of the 1929 Great Depression was the failure of the banks in Austria.

American economists are already saying that the stock market in America is over valued and so many of our companies have ties economically to Europe, don't think there won't be a panic and a sell off of US Stocks.....and what is everyone's 401k or pension plan invested in? U.S. Stock Market....( example-TRS.....Texas Teacher Retirement also is heavily invested. As are all pension funds..)

Watch Europe over the next few weeks.

Quit watching Fox News or CNN or MSNBC for 10 minutes. All they are doing is fighting for/against gay marriage or the Civil War. Watch BBC World Service or Bloomberg. Watch early morning Bloomberg Surveillance with Tom Keene. Once you get past Tom's poorly tied bow-tie, he's all over the Greek economy.