I completely agree with Ed Rempel’s very interesting points of view on the various different areas for worry such as the U.S. debt ceiling and European Crisis.
Since the stock market crash in 2008, it is obvious that everyone has gotten a lot touchier regarding economic situations that appear on the news and instantly jump to the conclusion that “we are all doomed.”
Rempel calmly addresses this style of thinking as follows:
1. This is nothing like 2008. People have clearly been under estimating the sheer power the US has regarding its ability to pay off its bills. The same goes for the crisis in Europe. There is a drive to keep the euro strong in Europe and the EU will clearly support every country.
2. Most of the problems in the US and Europe are simply political problems, not financial problems.
3. Our money is not getting invested in the government, but in companies. Fortunately for us companies are currently booming and are at an all-time high regarding profits.
4. Right now is the time to invest. Strong companies + pessimistic economies = profit in the long term.
Rempel clearly outlines that people eat up what they hear on the news about how times are going to be bad, when in reality the issues are a lot less significant as they’ve been lead to think. In fact, right now may even be the best time to invest:
Fear of a False Factor is Favorable.