Problems with Regulation: The EURO

According to the WSJ "The euro plunged to a fresh four-year low Tuesday, sliding below $1.22 as reports that Germany will issue new restrictions on some types of bearish bets on stocks and bonds sparked uneasiness in financial markets. U.S. stocks fell deeper into the red and investors poured into safer-haven U.S. government debt."

I think that one of the problems with regulation is that it prevents the market from following its natural course. Market failures will continue to exist, not matter the amount of regulation established. According the WSJ "The moves came after Germany's financial regular said it is banning naked short-selling of certain euro-zone debt offerings and credit default swaps as well as some financial stocks effective at midnight local time. Under naked short selling, the shares being sold aren't borrowed in advance." In my perspective I think that short selling is a good thing; Short selling works as an indicator of the financial situation of a security or in this case a country. Thus, prohibiting the existance of short selling is prohibiting the flow of information. The problem with Greece is not whether it is being short but rather its financial and management situation. The fact that it can be short is an indicator of the situation.

Scipio Africanus: Starbucks vs. McDonalds

Scipio Africanus according to Dr. Laurie of The California State University Long Beach is a strategy where a company attacks the market of another company, and the second company in retaliation attacks the first company market. One example is the current situation with Starbucks and McDonalds. In retaliation of Starbucks intent to sell sandwiches, McDonalds launched a coffee campaign and remodeled all their stores. The coffee, many argued, was better and at a much better price. This spring McDonals launched another coffee strategy: frozen frappes. Directly attacking Starbucks frapuccino market. However, Starbucks has launched a defensive strategy: attacking McDonalds cheap coffee. Starbucks by using one companies acquired seven years ago, Seattle's Best, is planning to expand to a mass market by using the slongan "Great Coffee Everywhere."

In my opionion this is a risky strategy; Starbucks is dealing with a giant company with unlimited resources. Thus, in order for this to work, Starbucks needs to make sure to take over the market. According to Ralph Waldo Emmerson “When you strike at a king… you must kill him.”

Greece, Can a Bailout work?

Well, Greece makes $343 billion per year and owes $405 billion. Can we arguably say that a bailout will get them out of the hole? Well, according to Dave Ramsey — radio personality, author and personal finance guru — the data from his world of personal financial advice is not encouraging: Most people who consolidate their debt are back in trouble within two years. Mr. Ramsey also says that even with the bailout, Greece will still be spending more than it earns. He says Greece needs to have a fiscal awakening before it can start to pull itself out of debt.
Thus, even after the crisis... what else does it take for Greece to realize this problem?