The euro's death rattle

[0007]

Interesting comment here http://www.spectator.co.uk/coffeehouse/7093213/the-euros-death-rattle.thtml - possibly of more value because it's written by a non-economist: Daniel Korski - provenance here: http://en.wikipedia.org/wiki/Daniel_Korski

 

[YouAreNotFree]

The comments under that article echo my sentiments perfectly.

 

[bedsit]

The comments under that article echo my sentiments perfectly.

Shouldn't let this affect your trading decisions whoever is the author (economist or non economist) They are only good at explaining why something happened after the event. Before the event - useless.

PS Trade what you see, not what you (or the press) think

 

[Bohica]

@bedsit I agree with what you have to say. These guys are great at predicting what happened yesterday. Might as well call them historians.

Do you think that by the of the week the EUR will overcome the over extension downward and start to come up?

I bought at Yellow arrow thinking it will rebound up but things are not looking well.

 

[glyder]

I love Europe, but all we need is free trade and cheap flights on easyjet etc for
a Europe of nation states to thrive in harmony.

When the EU and Euro collapses I'll be as happy as Larry. And far from the only one.
The good people of Europe are being abused by unelected power crazed marxists
hell bent on turning us into slaves. The sooner they are found out and kicked out the better.

 

[BeginnerJoe]

When 'The end might be nigh for the X.' is making the news headlines, this would the perfect moment to charge in with a shovel and load up on that sh*t.

 

[squall321]

Buy buy buy

 

[Doomberg]

Buy buy buy

Lol at buy

 

[Black Swan]

When it gets to parity with the dollar then perhaps the mission will be accomplished, IMHO that's not going to happen. Usd now bouncing around at record lows v the swiss franc, there's the real issue, the dollar clinging onto reserve status whilst the clever money positioned itself out of dollars...

 

[Pazienza]

Euro isn't going anywhere for the time being. Remember, it's a political thing, not an economic thing.

This crisis is just what they wanted and needed. Fiscal integration here we come!

 

[counter_violent]

Eurozone and USA are just totally financially out of control. They don't have a scoobydoo. All this govt meddling does is kick the can down the road a bit whilst delaying the inevitable blows ups and as a result they will be even more spectacular. All of this has to end very badly for the west and the rest of the world as a whole.

 

[safvan]

The free world will find its way.

Many former great nations went into high inflationary periods and then defaulted. The defaults are coming but that is not necessarily bad. Bankruptcy is part of life. Just like people, nations can come out of it too with time.

The speed of recoveries however are much faster in the western world.

Expecting innovation and worlds bright future from countries like China or India or Russia is pathetic. China and Russia alone need to do a tremendous amount of work to correct the human rights situation. India has to fight its own battles too.

The world needs the west to survive. All these stories of doom are crap.

Surprisingly markets move in the opposite direction of what most are thinking in the end. If things are looking very bad for the US economy you bet a rally is on the way.

 

[jthetrader]

Hmmm....I'm conflicted about where I want the Euro to go (not that the market gods will be paying any attention to my wishes lol), on the one hand I'm short it against the pound on my Forex demo account; so die baby die. However...my dad gets paid in Euros so the stronger it is relative to GBP the better off my family is. Then again, holidays in Europe will be nice and cheap with a weak Euro. And there's little chance of Britain joining the Eurozone if the Euro looks s*** compared to the dollar, I think 1.30 against the dollar is more like where it should be (given there was a time where they were at 1:1, and the debt crisis in Europe).

Maybe OPEC will be the white knight for the Euro, the Iranian oil bourse already accepts payment in Euros, perhaps a few others will follow suit to spite the Americans over their handling of Libya?

Who knows? Not I.

 

[jthetrader]

When it gets to parity with the dollar then perhaps the mission will be accomplished, IMHO that's not going to happen. Usd now bouncing around at record lows v the swiss franc, there's the real issue, the dollar clinging onto reserve status whilst the clever money positioned itself out of dollars...

True, I watched in have awe as during my very short period as a market watcher the USD has crashed against the CHF; but I think that's probably a knee jerk reaction more than anything based on fundamentals (thinking back to the 1970s when the Swiss Franc was a very stable currency to wit the negative interest rates in Swiss banks, people wanted to hold Francs). Plus, Switzerland offers very little beyond financial services and low taxes; they could be cut out of the loop quickly.

The dollar still has a long way to fall against other currencies though, 2 dollars to the pound was not so long ago. Plus they can print money based on the bad state of the Eurozone, their fall is buffered by the weakness of Portugal/Ireland/Greece.

 

[jthetrader]

Euro isn't going anywhere for the time being. Remember, it's a political thing, not an economic thing.

Interesting, do you think the abnormally strong Euro is being propped up for reasons of political facesaving?

 

[Splitlink]

Do you believe that the politicians can prop up the euro? I remember Major and Lawson standing on the steps swearing to support the pound in 1992-

 

[jthetrader]

Do you believe that the politicians can prop up the euro? I remember Major and Lawson standing on the steps swearing to support the pound in 1992-

No, I meant behind the scenes shennanigans e.g. banks deliberately propping it up as a favour to politicians, presumably one which will be returned.

 

[Splitlink]

No, I meant behind the scenes shennanigans e.g. banks deliberately propping it up as a favour to politicians, presumably one which will be returned.

That depends on what they believe is the risk for them. No one can tell when the big money will enter the markets or in what direction.

Here am I, pushing 80 and I'm still concerned with things like that! What a bloody life! There's, always a crisis somewhere or other.

 

[BeginnerJoe]

Here am I, pushing 80 and I'm still concerned with things like that! What a bloody life! There's, always a crisis somewhere or other.

At 80 and you are still doing the markets. Are you not afraid the markets might be a bit too exciting for the ol'ticker ?

The Chinese are keen to unseat the dollar as the reserve currency. Where would their other trillions go if not into EUR ? EUR is a strategic currency for them.

 

[Splitlink]

I think that that is what the Europeans are hoping. Someone had better hope that it happens soon because the pips are beginning to squeak on the EU economy. Zapatero is telling the Germans that they must do more. When you come to think about it, we have a bloody cheek, although the Germans got into this as much as anyone else. This is what comes of not wanting any more wars in Europe! Unite everyone!