I will be brief tonight.
We saw a well overdue bounce today after being extremely oversold. We have two huge numbers coming at the end of the week. Consumer data is outtomorrow followed by the big jobs number on Friday.
I thought this was a great piece from Bloomberg. As you can see below, the underground cash economy in Spain is flourishing. This now represents a whopping 23% of Spain's GDP.
You have to wonder if the same thing is inevitable here as our taxes do nothing but skyrocket down the road as we struggle to pay off record deficits.
Will Americans ultimately decide to "walk away" from their taxes just like they walked away from their homes?
I sure think so.
Should this be suprising if it happens? Heck no! Why wouldn't they walk away from austerity measures? They didn't create this mess!
The banks did and then bribed Washington into passing the bill along to the taxpayer. Why in the hell should we be stuck paying off the tab?
Raise cash folks. It might become the new "Mastercard/Visa" of the future as we become creative in avoiding the severe austerity measures that are inevitable as a result of the government's Ponzi bailout/spending binge.
I now look at the European debt crisis as a preview as to what we should expect to see here down the road in the USA. The problems on both sides of the pond are the same. However, our day of reckoning has been delayed as a result of our perceived "safe haven" status.