Detroit is in trouble. Here’s how the AP and Michigan investigators headline the story: “State Finds ‘Probable Financial Stress’ in Detroit.”
Out here in the real world, we’d say something like, “Detroit Falling Into Financial Cesspool.” Or better yet, “Detroit Going BK.”
Actually, the entire news story is filled with: unreality – weasel words – extend and pretend – financial ignorance – never speak the plain, simple truth.
Examples: “State Treasurer Andy Dillon sent a letter to Gov. Rick Snyder Wednesday alerting him to the finding.” As in, the governor had no idea Detroit was in trouble!
Or this: “Financially struggling Detroit just last week delayed paying some of its vendors and contractors to fund payroll.”
Therefore, the governor said, “he’d prefer that Detroit officials enter into an agreement to fix the financial problems on their own. But he may appoint an emergency manager if the review team recommends one.” The emergency manager would be the dictator, sent in to cut the budget and fire people.
So, they decide to have talks. That’s good. Talking is always better than actually doing anything. Maybe the problem will just go away? Of course. The State Treasurer Dillon said, during a conference call with conniving reporters (or should we say, stenographers), “”There is real progress. Everyone is willing to look at every possible solution.””
We give you this detail to show in simple terms what is going on right now in Europe. UK Prime Minister David Cameron was right to back out of the bank agreement some on the “review team” are suggesting, i.e. more money from the nearly-bankrupt EU countries to bailout the countries currently circling the financial drain.
Investment lesson: Learn to read between the lines. Learn how to know the real situation to avoid falling for the current fantasy. We don’t want to be caught by surprise. And believe this: the speakers of the fantasy know perfectly well what the reality is. They are speaking for the propaganda value, not for the reality.