Europe's debt crisis is like a vampire. It just keeps coming back when you think it's finally dead. We haven't been able to find a stake to put through its heart yet.
THE BRIGHT SIDE:
Right now it's hard to come up with reasons for optimism. I think we haven't seen the effects of lower gas prices yet. That'll start trickling through soon. And it's still the case that the U.S. is better off than Europe. The U.S. is just quicker on policy. Our economy is growing. You can't say that about most of Europe. Look at Italy, Spain, Portugal, even the U.K. — they're not growing.
There's little reason to be optimistic about Europe. Policymakers have handled it so badly, there's no reason to think they'll start improving now. The U.S. still looks better by comparison. The U.S. isn't the worst place to be invested right now. But that's not saying very much. On the other hand, if you're in Treasurys, you're doing awesome.
There's one thing to be certain of: Things will change. This is a dynamic system. When one piston goes down, another goes up. For every action, there's an opposite reaction.
Yes, global declines in asset values are painful. However, those declines include commodities. Oil, for example, is now 20 percent cheaper than it was last month. Expect to see that at the gas pump soon. That acts like a tax cut. There is a glass half full here. But I admit you have to squint pretty hard to see it today.
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