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Euro Plunges On Fitch Double Tap, Comments From Merkel
Chinabot is in full fail mode, after a sticksave attempt to save the currency following the Italian downgrade by Fitch was monkeyhammered with the Spanish downgrade which was not only two notches, but sent the country's rating to below that of S&P and Moodys. Adding fuel to the fire is an errant comment from Merkel who has said that Eurobonds are "absolutely the wrong way to go", and lastly, a last minute notification from Fitch which goes for Trifecta by saying that Portugal remains on outlook negative, and the result is visible on the attached chart.
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yeah that makes so much sense.
you compare countries by GDP, try comparing them by quality of life.
any german in their right mind would rather live in switzerland, unless of course you enjoy being around immigrants all the time.
We can only wish.
I'm sure that some people are thinking about it. The rumor of Deutschmarks being printed is spoken of.
What is lacking is the political will to declare this thing over, once and for all. The experiment has failed. Don't get me wrong, I love Europe and the idea of a common market but let's be honest it is a dream. The nations would have to surrender a big chunk of their sovereignty and that is neither going to happen, nor do I necessarily support it. We share alot but we're still different in so many ways.
Europe was functioning quite well before the Euro. Most currencies were pegged to the Deutschmark anyway if they could afford to. If they needed money, they would devalue their currency or worst case scenario have a currency reform. Happened a few times since the end of the war in several countries. There are reasons why it happened. The basis for that hasn't changed.
Many solid arguments and valid reasons why the Euro is impossible in the long run.
The upcoming event will be a watershed moment. Someone from the German political spectrum, from the government will have to "push the button" and release the capital that will be deployed outside of Germany against the will of a majority of German people. That politican might as well go into hiding for the rest of her/his life. Their career is finished and the action could quite possibly resurrect den Nationalen Gedanken, that was supposed to be forgotten once and for all.
Sending money from Germany to Greece will be like paying reparations under the Versailles treaty. It will have major political consequences for Germany and the rest of Europe.
Is Greece worth all that? I think not. Fuck the banks. Let them bleed.
well said, Walkure.
Empirical England collected 100,000 signatures of the PTB who want to leave the Euro - zone
for a while I thought we might get lucky and see the last of you winching Pommies...
but, sadly Cameron the Tori was afraid to let go of what he knows
is a better deal than being left out hanging alone in the cold..
bloody Pommies, they are truly a weird mob !
wr;)
This problem is really due to the bankers. True, the PIIGS governments did borrow a lot of money and spent it unwisely. But the bankers should never have lent them the money in the first place.
The bankers make a questionable loan and then purchase a CDS for a few basis points, and their balance sheet looks fine. And when the markets get nervous and the CDS goes up, perhaps their balance sheet looks even better. Their CDS has increased in value! The bankers book huge profits and pay themselves huge bonuses for making loans that will probably never be repaid. And when the whole mess blows up, the CDS underwriter goes bankrupt and the banks demand huge taxpayer bailouts because they claim they are too big to fail. Until the system is reformed and strict limits are placed on bank lending, we are just going to have one banking crisis after another.
The bankers are hoping to pressure Germany to "step up and do the wrong thing", which is to agree to cover all of the bad loans that the bankers have made. So this is really a fight of the bankers vs. the taxpayers. In the US, the bankers won that fight. People were extremely angry and elected Obama and the democrats in 2008 hoping that he would reregulate the banks. He didn't.
Let's hope for a different outcome in Germany.
The people need to understand what happened and how these bogus bank balance sheets were inflated. Subsequently bankers afforded themselves and their wealthiest clients (investors) a very lavish lifestyle.
Their success was dependent on the ignorance of the masses and the ability to persuade politicans that all will be good.
Well, it's not good. The tricks are blowing up in everyone's faces. Basic common sense dictates that nothing can come from nothing and these banker tricksters (at the top) have generated themselves a whole lot of wealth and value from nothing. They didn't work for this, they didn't deserve the bonuses or any form of exessive compensation! But they're not alone. Their wealthy clients have benefited from the tricks for the most part and then money that was based on nothing slowly trickled into the economy and keeping people employed, giving the peasants cheap loans and all that.
Nothing can grow from nothing. No crop and no livestock will grow from nothing. But we all need to eat vegetables and beef. The money tricks are all but used up. The confidence in money is fading. What is a Euro really worth? What is a Dollar really worth? Well as long as we the people accept the tender for our goods and services without a doubt and without asking questions, the worthless money can buy a lot.
That is coming to an end. I'm asking questions. You're asking questions. That's why we're here. That's why thousands across the US have started to protest.
We don't believe them. We have exposed them and we want them to go away and give us a chance to correct it.
When the MSM start asking questions about this ... and the Merkel starts hedging her words ... it's all over for the euro.
Rule #2 in Zombieland : the double-tap.
good to see somebody following the rules.
like I said before,
Gold is a currency hedge, that's all
Yeah, when the euro is up it hedges against the dollar and vice versa. Which probably means that it should more or less move in lockstep with the loonie and aussie. Meanwhile it has to supply all those Indian weddings and general Asian urge to accumulate it. Seems like a lot of roles for something that trades at a 200% premium to the cost of extracting it.
In spite of elevated price its market is miniscule compared to what it´s supposed to hedge against. It´s like an overfed flea sitting on a german shepherd frankly.
nope, the analysis is completely wrong, I had programmed in a uup buy stop order for hitting the top of the descending trend channel, and it was triggered today. so I had had the move predicted in advance with my computer, ( as I have been doing this same thing in the channel weekly for about the past month with udn, and uup. You are being like the stupid sheep and pretending that news flow matters when it's the algo settings that do.
you mae all kinds of noice when the markets don't follow bad news because it the algo's, then here blame the drop on merkel's comments, etc. please give me a break. just program the computers in advance!!
dcb take a look at the USD Index : as the USD rises against other currencies -
Oil and Commodities , as well as Gold and Silver usually move lower
and as the USD falls against other currencies -
Oil, Commodities , as well as Gold and Silver usually move higher
Commodities are mostly traded in USD
http://www.bloomberg.com/quote/DXY:IND/chart
http://www.bloomberg.com/quote/CRBIX:IND/chart
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