Follow the Money

Posted by Jeff Carter
on August 31st, 2012

If you want to know how well a country is doing, sometimes it just pays to follow the money. It’s an old adage that people apply to all kinds of things when it’s convenient for them. For example, in this election cycle, the money is going to Romney. In the last cycle, it went to Obama. Is the money trail always the tell? Not 100%, but it’s a good predictor.

Spain has had net capital outflows for awhile, but now capital fleeing the country looks like a river dam breaking. Up 40%.

Greece and the rest of the PIIGS have seen money leave the country.

It’s a statement on the confidence of the citizens of the countries they live in. No regulation or law will stop it.

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