Close-up of Stopwatch on Us Coin

Close-up of Stopwatch on Us Coin — Image by © Sung-Il Kim/Corbis

by John E. Charalambakis Ph.D., Chief Economist black_summit

By Thursday last week we felt that given the markets drop by 5% this year, it was time to put some money to work by investing into companies with strong fundamentals and which seemed to be at a good entry point. We still believe that this will turn out to be a decent year for equities. However, we have not abandoned the view that unless we experience significant reforms in global debt, derivatives, collateralization, and fiat money issues, the world economy may be facing within two-three years an unavoidable void that will be the mother of credit resets for decades to come.

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The views expressed on are not necessarily those of the Austrian Economics Center.