neerajchauhan
Neeraj K Chauhan
Credit is a system whereby a person who can't pay gets another person who can't pay to guarantee that he can pay.
The financial markets currently fear the outcome of the fiscal situation in Europe. The recession was all about leverage too, but that involved overextended homeowners and financial institutions. Government bailed out some and let others fail. But how does a government, or group of governments,bail out other countries ? A country like Greece or Portugal can't actually declare bankruptcy.
The unwinding of the worldwide credit bubble raises concerns among many investors. Yet, such uncertainty should be seen as positive, not a negative.
Ambiguity and fear causes assets to sell below their fair market value.
We want to be buying when situations like the European financial mess are making headlines, creating bargains.
So are the chances of bankruptcy rise again........
The financial markets currently fear the outcome of the fiscal situation in Europe. The recession was all about leverage too, but that involved overextended homeowners and financial institutions. Government bailed out some and let others fail. But how does a government, or group of governments,bail out other countries ? A country like Greece or Portugal can't actually declare bankruptcy.
The unwinding of the worldwide credit bubble raises concerns among many investors. Yet, such uncertainty should be seen as positive, not a negative.
Ambiguity and fear causes assets to sell below their fair market value.
We want to be buying when situations like the European financial mess are making headlines, creating bargains.
So are the chances of bankruptcy rise again........