- advertisements -
Can kicking 'nuff said...
mild recession in europe, downgrade
Cutting the rate causes the Euro to go down and dollar to go up on in normal conditions........ Why is the Euro going up?
Not when the Euro has dropped as it has, it will trick people into a false sence of security and the Euro will rally.
You are thinking about the situation where the rate staying unchanged is the most likely event. Here there were two outcomes, which had been priced in. If a 50bps cut would lose the euro 100 pips relative to a 25bps cut, and there was a 20% chance of that, then that would be weighing down the price by 20% of 100=20 pips (all roughly), so when that possibility was removed this morning, the Euro rose by that amount.
Another day of games, lies, deception, courrption and deceit. By next tuesday the house will be back on fire.
CitiGroup eurozone forecasts:
Our economists believe the sovereign debt and banking crises are causing a renewed recession in the Euro Area. Beginning in 4Q 2012 [Sic], they forecast real GDP to contract for 6 consecutive quarters. It is expected to be an especially protracted recession. Not even in Japan, during its lost decades, did real GDP decline for 6 consecutive quarters. Our economists’ Euro Zone forecasts imply real GDP will be some way below the trend established during the first 10 years of Euro inception (Figure 3) and not get back to previous peak levels for many years to come.
I gave a presentation on the Euro crisis, and some dolt in the audience said "I agree with what you are saying, but it will never impact the US." Apparently he doesn't read the news.
ECB Does Quantitative Easing, Eurozone Bonds Drop, Franco/German Proposal In Jeopardy
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Advertise With Us
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
How to report offensive comments
Notice on Racial Discrimination.