Thursday, December 1, 2011
PRIS and EU Follow Up
Well, looks like a number of us (Jubak, Cramer, me, etc.) were right and the EU will effectively print money to save its financial system. This has had a predictable effect on PRIS, which is trading at $4.80 this morning. Hope you took my advice and got in when it was below $4. I got out around $4.40, hedging against the possibility that Europe would just fail to act quickly enough to stave off disaster. Which, by the way, is still a possibility. On a meta-level, what is really going on? Central banks, including the Fed, are instituting financial policies which save financial institutions but provide no clear benefit to the average citizen and, in fact, shift the costs to the average citizen. The hope is that the U.S. and European economies will begin to grow again quickly enough that the bills can be paid. Precisely what you would expect from policy-makers: use admittedly wrong methods to prevent worse evils from occurring today and hope for the best down the road.
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