The latest banking crisis in Europe, this time in the tiny island nation of Cyprus, shows that the continent has not yet truly solved its financial problems. It has only applied a series of band-aids that have temporarily averted disaster, but have not yet provided a firmer long-term footing for the Euro-bloc. There could be another crisis of confidence at almost any time, with Italy and Spain being the most likely instigators.
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What did The Turnaround Letter see that others did not?
I don’t normally comment on individual stocks in this particular blog, but the MGIC situation represents a basic investment principle that is worthy of discussion here.