Peter Bromberg's UnBlog

Socialism in Europe and in this country always starts the same way – promise people free health care and free retirement and free housing and whatever free stuff wins political favor and gets you reelected. This is what progressive liberals do and what Obama is doing. And people keep voting for them because they love "free stuff".  They don't care where the money comes from.  Some claim that the "rich" will pay for it all. But, the rich do not have enough money. They may have enough to pay for the very poor, but not for everyone. So, the socialists borrow the money. That way, they are still giving the populace free health care. But, at some point you can't borrow the money anymore because the people you are borrowing it from realize that they will never be paid back. This is the tipping point at which socialism fails. Past this point, you have to tax the people to whom you promised the "free" stuff in order to pay for their "free" s...

Before you get excited about the last minute Euro-Deal and the 340 point rally in the Dow, consider this: Wall Street has been dancing to Greece's whistle. If Greece says 'jump,' Wall Street jumps, if Greece says 'Sorry, false alarm,' Wall Street cries. This has been going on for about 2 years now, and it's getting pretty tired. Shame on you if you think everything's going to be fine just because Greece and/or its European pretend-to-be saviors announce another plan to come up with a plan. Greece is broke and has no significant revenue sources to pay off its debt. Foreign investors own about $385 billion worth of Greek government debt. Many banks and governments that own Greek debt are at the brink of insolvency already, so Greece's inability to pay its debt may push other countries and their banks into insolvency. You can't trust statements from European officials because they are trying to prevent panic. Panic will make any kind of solutions m...