European banks hold much Greek debt, that will be sure to go bad. Till this issue unwinds, American banks will be under pressure to reduce their exposures to European lenders, stifling attempts by euro-zone banks to borrow directly from them. It means that the process of infection that has spread from Greece to contaminate other indebted countries in the single currency is now threatening to go a stage further and make any mention of the word "Europe" seem toxic.I have to decide if (1) to sell everything and take refuge in dollar bonds, or (2) to wait out the storm that will clean the air and allow the stock market to regain its former level. With the American suprime crisis I waited out and it was OK in the end, what to do now? The world financial system seems to me wrong when a default that has not yet happened, like those subprime loans to American underclass or the Greek loans, can paralyze with fear the whole world. It seems to me absurd, excessive and irrational panic behaviour. Yet that is how it is and I cannot do a thing but wait till all the anxious people around calms down.
First Japan and now the whole White race - America and Europe - have been seized by a deep fear and pessimism about the future. They behave like hysterical old men. Every small cloud in the horizon makes them run for protection... where? in gold, in US bonds. I think it is time to leave this decadent part of the world and move to an optimist, confident, growing universe. Maybe it is China where I should be moving my savings.