I have been following the Greek debt issue for a while. You may say who cares. Well folks who own stock care some as Wall street seems sensitive to the issue. But other than that who cares?
Well aside from feeling sorry for the Greek people what's the big deal ? The problem is the ripple effect this could have. If Greece defaults in a disorderly way it may cause the European banks to have problems. It may also mean that other countries that are having problems will default because nobody will lend it them. If this snowballs it may lead to a big European recession. Now for us that would mean we would sell less to Europe and things here would slow. Some thing we do not need.
On the other hand money is moving into this country as a safe haven. That money is one of the main reasons interest rates are low. So all the news is not bad. But we must remember the last time tons of money moved here. It fueled a housing bubble that had terrible effects, which we are suffering through today.
So what does a Greek defualt mean to us? It means that our recovery will be slower . But it also may mean there is more cash in this country . We should take advantage of the influx of cash to revitalize our economy without speculation.
These are interesting time we live in. We always say Real Estate is local. but I have to say it is effected by what goes on in the Global Village.
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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog
On line at www.allmountainrealty.com Call at 706 579 1098
