Fragile and Unbalanced in 2012

The Nation of Change has the brief article Fragile and Unbalanced in 2012 by Nouriel Roubini.

The outlook for the global economy in 2012 is clear, but it isn’t pretty: recession in Europe, anemic growth at best in the United States, and a sharp slowdown in China and in most emerging-market economies.

Since Nouriel Roubini has already earned the sobriquet “Dr. Doom”, he has no need to sugar-coat what he says.  He is free to point out weaknesses in all economies from The United State, Great Britain, other Eurozone countries, to even China.

What are the chances that the politicians have the technical expertise to understand what has to be done?  Of the number who have a chance of understanding, how many have the courage to do it?  Of the remaining few who meet both criteria, how many have the public support in their countries for the steps that are necessary?  Divide that number by 6 billion people on the earth and you have some idea of the probability of everything turning out fine.

Despite all of that, I am still fully invested in stocks of high quality companies.  Am I a fool or some sort of  cock-eyed optimist?

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