Euribor Declines As Euro Extends Slide To 100 DMA, Europe Poised On Verge Of Relapse Into Full-Blown Crisis Mode

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Thu, 08/12/2010 - 08:10 | 517364 Mad Mad Woman
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Here we go again. I get so tired of these summer repeats.  :-)

Thu, 08/12/2010 - 08:14 | 517365 jbc77
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For a while it seemed as if the Euro crisis had fully abated. Poof. Everything was under control, or so the masses were told. I miss the Euro debt crisis, I'm glad to see it finally come around again rearing it's ugly head. Just once I'd like to see the central bankers grab their ankles and take it up the rear real nice.

Thu, 08/12/2010 - 09:17 | 517473 Max Hunter
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yeah.. it's like an old girlfriend or porn DVD that you never threw away and bust out every year or so.. LOL

Thu, 08/12/2010 - 08:17 | 517369 Dismal Scientist
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Was it ever in doubt ? The Euro falls through the ugly tree and hits every branch on the way down. A 'currency' that has no business existing in its current form in the first place.

Thu, 08/12/2010 - 09:04 | 517450 DarkMath
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Two words: Nordic Euro


Thu, 08/12/2010 - 09:50 | 517528 Dismal Scientist
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Germany + the Nordics that didn't want to play in the first place ? I struggle to see why they would want to play with anyone other than Germany, to be honest. France, Belgium are in poor shape, and Austria is too Eastern Europe facing. Remember France remains Germany's single biggest trading partner, they will go to the next phase together. So am not buying a Nordic Euro yet

Thu, 08/12/2010 - 10:42 | 517674 youngandhealthy
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Nordic Euro is allready there. It is called NOK and SEK.

Thu, 08/12/2010 - 08:18 | 517371 LeBalance
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EURUSD through the 100 DMA (1.280000), printing 1.2791 with a low earlier of 1.2784 (0815 EDT). (source: netdania).

Thu, 08/12/2010 - 08:21 | 517373 newstreet
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Thu, 08/12/2010 - 08:23 | 517374 Moonrajah
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I guess zee Germanz are okay with that.

Thu, 08/12/2010 - 08:23 | 517376 Amsterdammer
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Another macro data worth 'worrying': industrial

output in Europe down 0,1% in June

Could this be the PBOC selling its 'euros'or the

SNB 'destocking', crazy FX market

Thu, 08/12/2010 - 08:26 | 517378 MrTrader
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For all wanna be currency dealers here : retail investors are still short EUR/USD for weeks. Sorry guys, you are on the wrong bandwagon. But fi you want to play further JPY strength, this might be a very good idea ;=)

Thu, 08/12/2010 - 08:57 | 517442 THE DORK OF CORK
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Ireland is in trouble because its private external monetary debts are absurd.

The fiscal problem is a distraction.


Germany ,France and London will have to take losses of many 100s of billions if Ireland is to remain in the Euro.

Thu, 08/12/2010 - 09:04 | 517454 DarkMath
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Two Words: Nordic Euro



Thu, 08/12/2010 - 09:09 | 517460 John Bull
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Dear Dork,


Can you elaborate on that?



Thu, 08/12/2010 - 09:33 | 517505 THE DORK OF CORK
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Our monetary banking institutions owe many 100s of billions in external debt while fiscal debt is in the region 85 - 90 billion euros.

The Fiscal debt is not really the problem here - they are deflating the entire domestic economy to pay as much private debt before collapse.

We owe German banks 200 billion euros + alone.

If the ECB continues to have its finger up the hole of its client banks then soon they will participate and be the major cause of a massive hyperinflationary event Europe.


The ECB needs to start bidding up gold massively to protect the treasuries of Germany , France and Italy - then the holders of Irish and Iberian paper will be in a postion to take a loss and remain solvent.

Thu, 08/12/2010 - 09:56 | 517538 John Bull
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Dear Dork,





Thu, 08/12/2010 - 10:05 | 517568 ElvisDog
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As long as the amount of debt destruction is higher than the rate of debt/money creation, you won't have either inflation or hyperinflation. I like the bathtub analogy. As long as more water is flowing out through the hole in the bottom of a bathtub than there is water coming in through the faucet, the bathtub won't overflow.

Thu, 08/12/2010 - 13:22 | 518052 romanko
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This whole "debt destruction" theory doesn't make sense. When a debt is defaulted on or written off, it doesn't imply that the associated money that was created when said debt was issued is somehow destroyed. If I borrow $100 from you to spend on lap dances, then I dafault, yes from your perspective, $100 has been "destroyed", but you're forgetting the stripper now has that $100 and she's spending it on crack and pizza - it remains in the economy, and it's inflationary potential exists irregardless of whether the loan that created it is defaulted on or not.

Thu, 08/12/2010 - 14:01 | 518176 Lux Fiat
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Short term, the stripper may be spending $100, but there might be some "wealth effect" impact on the person who loaned the money in the first place, thinking that their loan represented an asset, instead of a big zero.  So some level of contraction would likely occur, although it might not be at the full level of the defaulted amount.  Longer-term, the money lent will not be there to spend or reloan when the original due date comes about.  A case could be made that the true impact of a default occurs in the future.

Thu, 08/12/2010 - 11:32 | 517799 iPood
iPood's picture

This should drop another turd in the kiddy pool. I apologize if it has already been posted. Have a great day!


Thu, 08/12/2010 - 12:29 | 517932 Lux Fiat
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Party pooper!  Everyone was thinking that it was a Baby Ruth floating their way this summer, and now you had to go ruin the illusion.  Just waiting to see if folks start screaming and scrambling to get out of the pool.

Thu, 08/12/2010 - 14:07 | 518199 Grand Supercycle
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DOW and SP500 bearish megaphone wedge charts continue ...

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