1990: Edward Scissorhands – Burton
Financial planning or more specifically, selecting investments from the global range is an awkward task these days. Today, following the latest round of not looking at a gift horse in the mouth, Greece having been granted a bail-out deal (which is not good news for anyone) have been downgraded by credit rating agency Fitch from CCC to C. They believe (as do I) that Greece is more likely to default, not less. The current package, would see a..wait for it… 53.5% “haircut” on Greek Government Bonds. Now these days I have little requirement for a trip to the hairdresser.. but imagine going to one and coming away with only half a haircut… it might have been ok in the 1980’s (passed off as fashionable) but unless you are a pop star, probably not terribly welcome. In essence this means that those holding the relevant Greek Bonds will lose half of their money… which granted is better than losing all of it.
The great sadness with this is that whilst there is much to criticise about the Greek economy, political and welfare system, this is incredibly harsh on Greek people, who are probably at melting point. This mess was caused by the credit crunch, the folly of the Eurocrats believing (as many still do) that one size fits all. Have any of them ever left their standard issue European hotel room and gone to a bar, shop or museum? Difference is the jewel that makes us human and frankly makes life so fascinating. Attempting to force a nation or region to all work in the same way, spend in the same way is Utopian lunacy. We go to the Med for holidays because of the weather, not because it is the best environment in which to build a car in a factory. I simply don’t understand the pre-occupation with the Euro. A Europe united does not mean a Europe the same. The continual denial of the reality that the Euro is broken costs us all more each day and is particularly punitive on the Greeks who are much maligned and all too unfairly. May I suggest a rewatching of Edward Scissorhands for those that continue to suggest we should all be the same or will they go on believing the “suits you sir!”.
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