Newspapers are about selling newspapers.  Exagerate and abbreviate.  And leave lots of room for advertisements. 


Yes, you have to study to understand what's going on in the world.  And you have to use the news cycle as a way to find angles on the markets or on companies.  But recognize that journalists are paid to write - and to write in a way which creates drama around some event. 


Case in point.....


Oooooh...Greece is going to get jetted from the Euro....Ahhhh!  So what? 


Oooooh...Portugal is next.....Ahhhh!  So what?


What exactly will that mean to YOU?


It's not like each of those countries makes the Euro STRONGER....Kicking them out will make the Euro stronger and more competitive as a reliable global currency. 


And what about the so-called "Austerity measures"?  Whatever you want to call them, Greece and Portugal and the 3 other little PIIGS will definitely restructure their debt...what choice do the creditors have?  Take zero?  Not likely.   10 cents on the dollar is better.  One cent on the doillar is better.   It will pass.


And you can tell it will pass because everything is getting hammered.  Equities are down.  Gold and commodities are down.  Yield instruments are down.  People are going liquid because they are scared...and yet economic data continues to suggest the world (and more importantly the US) is on the mend...not robust gangbusters rock and roll strong...but very meekly, slowly...dare I say it...."cautiously optimistically" on the mend...there, I said it.   It's an election year down south.  Obama will probably win...but who really cares?  the president doesn't really dictate the economy....things will continue to be "on the mend" no matter who wins.  But its another contributing factor to creating nervousness. 


I digress...when all things correlate to 1...when everything goes down, its because of fear, not fundamentals.  If Greece being ejected from the Euro (for years, no centuries, of fiscal mismanagement) were really going to spell economic disaster, then Gold for one would be going up. 


Just like last quarter, the markets go bonkers when we get focused on a big scary issue.  But it will get fixed.  It will die down.  The rioters will go home and have a rest...until next quarter. 


Too bad we can't get everyone focused on something more feeding the hungry...or clothing the poor....or medicating the journalists, I jest.    Can you imagine what would happen if 7 billion people were trying to fix these problems instead of just 7 billionaire friends of Bill Gates?