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Wednesday, May 9, 2012

Cautious Turn in Europe Affects US Markets

It is well-noted that after the French election, a cautious turn of events in Europe is affecting U.S. Markets.  This is a disappointment as France is going to the far left politically at a time when it's unemployment rate remains in the double digit.  I've toured foreign businesses and can vouch for French entrepreneurs that their paid workers will not work.  Capitalism is dead.  The quality of living is dismal.  We complain of the French smelling bad but what the French people must do is not bath so as to conserve on their water bill.  It's a matter of finances.  A young educated woman must delay marriage and seek employment in a town two hours away from where she lives thus paying a high gasoline bill and spending a lot of time in the car.  She commented that she is lucky to get the job.  These folks are smart, educated and hardworking people yet the policital environment as well as the legal system restricts opportunity to profit and for capitalism to enhance the fruits of their labor.  Perhaps other European countries are to follow.  Back home, America may be a house divided between capitalism and socialism but it's offer of free enterprise may be challenged as politics and other special interest groups intervene.  Hence caution is advised for accounts exposed to investments in European markets or for American companies who derive more than 50% of their profit in Eurocurrency. 

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