As promised earlier on our investment blog, I am coming back to the periodical analysis of the European crisis. These weeks’ radio silence is quite strange – let me explain why: at the end of July 2012 there was a loot of noise about Greece (complaining they are not able to meet the new deficit and financing targets anyway – PASHOK source) and Italy (where some regions from South were stating that they are broke). Now there was nothing new about these two countries and these weak points on their geographies. It was known since 2010 that Greece will have a very hard time to meet any financing commitments, whilst the south of Italy was never a model of public excedents in terms of budgets (especially if you look at their taxes collection history and habits). But the noise surrounding these events caused the major European stock exchanges to have mini-strokes again, whilst even some rating agencies threatened the all-mighty Germany with downgrading their ratings (based on its exposure to these two countries).
Now it is quiet on all media fronts. So quiet, that you can hear a Euro coin falling from Berlin to Athens. Could be that all politicians are on holidays – or could be that the speculating bankers are on holidays or thinking about new ways to profit from this. Either way, for me this silence is not good. So I would actually take advantage of this respiro moment to revise my investing priorities. What do you think?