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  •  "flawed" (1+ / 0-)
    Recommended by:
    Jeffersonian Democrat

    I agree.
    According to Stan Goff, "the Euro will never take over the U.S. dollar because it's a satellite currency" [to the dollar].

    Europe: fragmented, with its own problems.
    I believe Europe as a whole, while they obviously have done a better job than the US, particularly with energy, they still seem to be a satellite of the U.S.
    When the US Subprime Hydra reared its ugly head in August, notice it first appeared in Germany.  The German bank IKB gave out signs of distress.  Next:  the french bank PNB Paribas was the next one in line at the Guillotine.  In September:  UK Bank Northern Rock has a run on its bank.  The Bank of England gets sucked into the Vortex.
    A big part of Europe now seems to be in the middle of Spring Cleaning, wiping out Millions + Billions of Losses to their balance sheets.

    Headline in Swedish newspaper Dagens Nyheter:  "We have a housing bubble which is worse than the U.S." .  (I find that truly hard to believe)
    The article singles out Spain, the U.K., Denmark and Sweden as the most vulnerable right now.  Also France but not as serious as the other 4.
    I just don't see Europe as taking over in any kind of leadership position, with the U.S. following in the Caboose.
    Europe has typically been fragmented, unable to agree on many issues.  The US pounced on that vulnerability.
    As the US tide sinks, Europe will sink right along with it.  

    •  RE Bubbles (1+ / 0-)
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      Cliss

      The article singles out Spain, the U.K., Denmark and Sweden as the most vulnerable right now.

      Spain and the UK are well known. I've also heard Ireland, Australia, and China.
       Denmark and Sweden are news to me.

      The 2nd Red String Conspiracy

      by gjohnsit on Tue Nov 27, 2007 at 02:31:43 PM PST

      [ Parent ]

    •  Cliss, I Know You Are Right (2+ / 0-)
      Recommended by:
      gogol, Cliss

      ...cause you do your homework. Funny, I never thought of the Euro as a stand alone currency -- but always in relation to the USD.

      Now that I think of it, I don't really care what happens to the Euro other than its relationship to other currencies.

      Since August, I've been buying holding the Euro (and GPY) in a 50:1 Forex account. The chart below (snapped the other day) shows net profits in the $300,000 range. It's the same chart I've Diaried here many times along the way (with lower profits).

      I think the Euro bashing Jerome has documented is about pundit panic about the dollar crashing (and probably boils down to oil in the end).

      I'm not sure a single currency can replace the Dollar. The Euro works for now -- but I see a synthetic world trading currency forming soon (a basket of several currencies, especially Asian). It's inevitable.

      Meanwhile, consider my dilemma -- and the dilemma of banks everywhere.

      I can't really sell and take profits because then I'd be holding Dollars. And holding Dollars is a hot potato on its way to worthless. IMHO

      If the Feds lower interest rates this month, this account will make another $100,000.

      It's the only sure thing I've ever experienced in the markets.

      __________________
      Fascism ought to more properly be called Corporatism since it is the merger of state and corporate power. - Mussolini

      by Pluto on Tue Nov 27, 2007 at 04:01:32 PM PST

      [ Parent ]

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