The death of capitalism? (part2 finale)

On my previous article we saw a little bit about what's going on in the global scene. Also we saw a bit about the interaction between the east and the west. How crisis from one continent can spread on to another and the cycle of the economy. Today we will see a simple example showing us, why this crisis was created in the first place.

The death of capitalism? (part1 intro)

In the last year we hear about financial problems and bubbles all over the world, USA, Europe, Japan. Most of the countries are in great debt and are struggling to serve it. Is this the end of capitalism as we know it? Will we see another type of economy in the next years, or a total collapse? If I knew I wouldn’t be writing this article and for sure, I wouldn’t share this info with anyone else, but nevertheless there are some facts which we must see and mark them bold. 

Is debt bad?

Tivadar's post on Monday was delightful and included some simple arguments to answer to those who suggest that austerity measures are the only solution to the European problems. But today I will like to develop his thought a little bit further...

Before we start we have to clarify that the European problem is not about debt, everywhere on the news you hear about debts etc. and that is wrong! It is about debt servicing, because there are countries which have trillions of debt and can pay it (at least for now) without a problem and there are others who can't, as we discussed in the past. This leads to lack of trust and as a result to lack of financing.

A country isn't equal to a household

The European debt crisis is still at large. There are still attempts of finding a solution for this problem. It seems that everything that was done until now to solve this is not enough. The wonderful thing about this situation is that suddenly everyone knows everything about debt and everyone has their own version of a solution. The most popular opinion is the one which compares a country to a household. The supporters of this idea say something like this: I don't spend more than I earn so I don't have the need to borrow money. So the countries should not borrow money and they should not have debt because they act the same as an individual but on a larger scale...

No investments no growth

The last days we hear a lot of noise about the Greek issue. Will their congress pass the new laws? Will the PSI be implemented on the Greek bonds and economy will be once more in stability? We will know soon…

Saving for a sunny day or personal finance for dummies

Most people have a weird connection with money. By that I mean that they can't handle them properly . How many times have you wondered what happened to the money I had in my wallet? You thought you should have more but the wallet or the bank account sadly doesn't lie. Before you think that I am going to tell you to stop spending that much I am going to say that this is not the solution either. You may have noticed that when specialists  mention saving money they say that you must have a plan. The truth is that this is the only thing needed in order to have some money on the side for an emergency or , wait for it, for an opportunity

Haircut won't solve anything

On my previous post I wrote about interest rates and sustainability of the Greek debt. It is clear that with those numbers debt can't be served.  We talked a bit about haircut and now everywhere in the news we hear about PSI and disputes about the level of percentage. The question is whether haircut is a good solution or not and if it’s the only way for salvation.

To haircut or not to haircut?

Yesterday we saw why Greek Debt is unbearable and could bring even USA to its knees.  Everyone in the news talks about haircut and the percentage which will be forced. Of course we will see at least a 60% haircut in bonds but is this policy fair for everyone?

Why Greek Debt can't be served

Every nation in the globe is in debt. Particularly in Europe things have turned ugly. The PIGS as many racists call Portugal, Italy, Greece and Spain seem to be the problem, but the shiniest of all four is Greece. Media loves her, analysts do whatever possible to dug her and the hole world has a daily headache about how things are going to turn up and the questions is WHY? USA have 15 trillions of debt, UK 9 trillion, France and Germany about 4.7 trillion and still everyone points at Greece with only 530 million, what is the problem here?

Haircut, everybody wants one!

Price determines the value?

Today's article was an instant inspiration, I was going to write a post purely about economics but it seems it will be postponed until next week. Yesterday my Panasonic pc headphones broke up and today I went shopping to buy some new, but instead of picking a well known and reliable brand, I chose Carrefour headphones. I saw the specs and a comparison with my previous Panasonics made me thought they worthed a try.  After all they cost only 11$ and 1 year guarantee is included. When I used them, I was impressed!! They sound so professional, like my 230$ headphones I use for my synthesizer (except from a minor bass gain)!! So the question came on my mind and is plain and simple, why pay for something that is more expensive and possible not as good as a cheaper brand?

nigga approved headphones

I am # 1 so why try harder? part2

Yesterday we talked about Kodak bad management which led to bankruptcy. Today we will see another example, Nokia. A similar story but with a happy ending, so far at least...



Nokia as many of you remember went crazy on sales in the 90's. I remember everyone in school and friends having at least one Nokia device. They had the best cell phones, pricing was good, really reliable, best cameras everything about them was pioneer  (mine kept for 7 years until I stepped on it, on a Prodigy live..). Between 1996 and 2001 Nokia’s sales increased almost fivefold, to reach €31 billion. Just imagine that!! They owned the market and played the game as they wanted until....

I am # 1 so why try harder? part1

 The title of this article was inspired by Fatboy Slim 's  album

Τoday I heared the news about  Kodak and instantly this title of my favorite Dj came on my mind. How it is even possible for a giant like this to be one step before bankrupcy? Really wtf??? This company is a legend and has shaped the modern world (in a small part of cource).

Smart USA stupid EU

I am sure most of you have heard about the economic crisis which affects most of the European countries and their banks. If you haven't I would suggest you to go and see an otolaryngologist. Recently I read an article on cnbc stating that European banks sell their assets to have the liquidity required for them to fulfill the European Banking Authority's deadline, to raise more than 114 billion euro ($149 billion) in fresh capital until June. Now many companies and investment groups from US seize the opportunity and buy those assets.

Gold has hit a cap? Part 2

So why manipulate gold? If you saw the Mexican wave video from yesterday, you can easily relate it to gold. The wave just needs a good start in order to complete a whole round of the stadium. The same thing applies for gold. It just needs the correct amount of price increase, to spread enough panic and start an avalanche. 

Gold has hit a cap? Part 1

On my previous article about gold, we discussed some general stuff  about it, such as historical background, ways to own it and how the value responds to the inflation policy of the central banks. Now we will talk a bit more about the real value and wicknesses which are not depicted in the current stock market value.

I will be honest, I was a fan of gold, but in the last months my thoughts have changed. In a volatile and fluid economy, value is a relative term and we will see soon

Risk management

Let’s assume that you have an available starting capital, how would you manage it? Would you invest only on stocks of a growing economy? Would you purchase energy stocks or invest on foreign currencies? Unless you have a great source of information, the answer is never invest to just one! Targeting only a specific investment can be disastrous and if you got profit once it doesn’t mean you will have again anytime soon. I don’t think it worth’s the risk, being a more cautious player can be more beneficial in the long run!

In a portfolio no matter the amount of money anyone is prepared to invest,

Value of Gold

It is known that, gold has a long history starting thousand years back.  It has been used in jewels, as a mean for transaction, as a currency, in circuits etc. but no matter the time, it symbolizes the wealth and prosperity of the holder. During wars, gold was the first valuable thing to loot and now all countries have large quantities of it in their reserves (check the link that describes the countries having the largest amounts).

Golden mask from Mycenae grave in Thessalonica museum