Ok, so I decided to do my MBA in Spain. The logic behind this was simple:
1) My career thus far has been focused on international business
2) I love it
3) I have already worked in Asia and North America, so it makes sense to experience more of Europe
4) If you are going to drop $100K for a piece of paper, why not enjoy yourself in the process?
So the decision is simple, right? Well, yes… I guess. But there is of course a moment when pen hits paper and you find yourself filling out a check for an ungodly amount of money. This is certainly a gut check – “Is this the right school? Is this the right time? How many dollars is this anyway?!”
Well…
As of December 21st: $70,000
As of January 10th: $65,000
As of April 26th: $60,000
As of May 6th: $56,000
Huh?!?
Look I love free money. Definitely I love free $14,000. If you were to approach me on the street and offer me $1 I would happily take it. But seriously what the heck is going on here?
What is going on? Well, Greece is going on! And so too is Portugal and Ireland and… Spain. The PIGS (yes, use your Scrabble or Words-With-Friends skills to figure this out) are coming to feast on a trough of economic scrutiny. After a good scrubbing of the multitude of Wall Street balance sheets, the Excel-happy auditors have moved on and found a curious anomaly: these developed/ing countries are COMPLETELY INSANE.
Like a 16 year old girl with daddy’s credit card, the PIGS have been racking up debt on fashionable goods to attract the popular boys, while skipping school and avoiding work.
Well listen sweethearts, it’s time to put down the plastic and pick up a shovel, because you are in a heap of trouble. Your debt does not match your spending. “Oh, but you have siesta and sunset walks on the beach to attend to?” Well I have news for you. You also have 8-10% cost of capital to attend to.
Go ahead and riot Greece. Go ahead and blame Goldman Sacks Portugal. The reality is that you have a truckload of debt, no substantial exports, and no future economic growth to leverage. Go ahead and cry to daddy for a new credit line if you like, but ultimately it’s time to own it, cut spending, and grow your productivity.
In the meantime, I’ll enjoy the low euro with a cheaper cerveza to accompany my tapas and MBA.
Salud!
Hey Jeff, this all sounds good...as far as you bought your euros at the current exchange rate, and not back in Dec.Jan.
ReplyDeleteTotally accurate Jeff!
ReplyDeleteLets enjoy cheaper beer!
and regarding Greece, i can totally agree with you, but you also have to understand the "normal"people which belong to a (cracked) system. I can hardly believe how hard should be for them.
But thats globalization, country walls (specially in Europe) not longer exists, so I don't see why a German has to work 67 years, when the Greek used to work only 50...NO WAY! It is time to work guys and produce something...give me some UZO! =)
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ReplyDeleteFedi, don't hate me for having $s. It's not my fault, but I will enjoy it non-the-less!
ReplyDeleteInteresting Blog tells the information of my MBA journey and how to finance mba on currency.
ReplyDeleteLOL, im with you Jeff. Over the past 10 years Europeans have been so incredibly arrogant towards Americans I have almost no sympathy. I spend about 2 months out of every year in Europe and I remember how much cheaper these countries were pre-euro and i'm looking forward to the return. Paseta anyone? Hehe! So I have one thing to say "THANK YOU GREECE, PORTUGAL AND SPAIN, HEHE." Now lets see how long your daddy countries are willing to pay the bill before they "cut you off."
ReplyDeleteyour cute too, hehe
ReplyDeleteYour sis thinks you are a great writer. Keep it up and enjoy your sudden advance in wealth!!
ReplyDelete