The markets are looking for that silver lining in the Eurozone meeting that begins later this morning. The Eurozone leaders are saying all the right things, but saying and doing are two completely different things… The risk of disappointment remains hanging over the euro (EUR), folks… Don’t get all lathered up because the euro is well into the 1.39 handle… Should the Eurozone leaders disappoint this afternoon, and I truly believe they will, the euro will be taken to the woodshed, for all of this rallying in the euro has come about from optimism that the Eurozone leaders will in fact deliver the Eurozone from evil…
[Read more...]Kicking of the “Farewell Euro Tour”
October 20, 2011 By Leave a Comment
Today’s issue of The Daily Reckoning features the first installment of the “Farewell Euro Tour” — a collection of on-the-street conversations with ordinary folks in Europe about the Greek crisis, and about what this crisis portends for the euro zone. The tour began in the Netherlands, then moved south to Switzerland and then to Italy.
[Read more...]A Look at the EFSF Pushes the Euro Higher!
October 20, 2011 By Leave a Comment
The euro (EUR) has bounced higher this morning after the details of the Eurozone Financial Stability Fund (EFSF) were announced. It looks like there will be more than enough to go around to help Spain and Italy… And the audit of Greece (to see if they are implementing the austerity measures) is finished, and they EU commission has recommended the next tranche of bailout funds be made to Greece. So… The “death watch” on Greece has to order out for more coffee and pastries, because they aren’t defaulting this week… The problems aren’t over for Greece, though… There are more austerity measures that have to be approved by parliament, and then implemented…
[Read more...]France and Germany Agree to Increase in EFSF
October 19, 2011 By Leave a Comment
Front and center this morning… Spain may have seen a 2-notch credit rating drop yesterday, but it didn’t matter, as it was announced that France and Germany were ready to agree to a 2 trillion euro rescue fund… Now they’re talking about a rescue fund, and not just the 500 billion euros they had previously agreed to. And the markets went hog-wild over this announcement. The dollar rally was quickly reversed and the euro (EUR) was on its way to 1.39, where it sat this morning until a few minutes ago… The Eurozone leaders, thus raised the ante… Who’s going to call?
[Read more...]Jobless Claims Rise Back to 400,000
October 7, 2011 By Leave a Comment
The sweet sounds of risk taking have been playing the past few days, and unless the trap door gets sprung again today, the euro (EUR) will most likely end the week on the good foot, as James Brown would say… After a couple of weeks of euro bashing, the euro has quietly rallied… And it can all be pinned down to the idea I told you about the other day, regarding a rumor about recapitalizing European banks…
[Read more...]Bernanke Says US Economy is “Close to Faltering”
October 5, 2011 By Leave a Comment
Yesterday Big Ben Bernanke took the stand to talk about the economy… I sat here in amazement with his disconnection to the goings-on in the economy… He still believes the economy will be stronger in the second half of the year… Of course, one only has to question that if he really believes that, then why did the Fed Heads implement Twist & Shout? If the economy is on the verge of taking off to the moon, why did he need to cut interest rates 0.5%, which is what, in his own words, Twist & Shout is worth… 0.5% rate cut…
[Read more...]All Eyes on the New ECB President
September 19, 2011 By Leave a Comment
Remember when I told you that Big Ben Bernanke changed this week’s FOMC meeting to a 2-day meeting from a 1-day meeting, in order for the Fed Heads to discuss all their options for stimulating the stagnate economy. Well, since the last FOMC meeting, we’ve seen job creation collapse, The manufacturing index heading toward contraction, retail sales during “back to school sales month” show no gain, and in something that seems that only I care about anymore, the TIC Net long term flows (foreign net purchases of treasuries) was only $9.5 billion…
[Read more...]German Banks Warm to 30-Year Greek Debt
June 30, 2011 By Leave a Comment
Another vote this morning will take place in Greece, this being the most important thing of the day… So, I guess that’s all we need to talk about, eh? Not so fast there, my friend! There’s more to talk about, so stop beating around the bush and get to it! OK?
Front and center today, there’s more optimism that the “implementation” part of the 2-day Greek voting in Parliament, will pass, and that optimism has the euro (EUR) on the rise again. The first vote to accept the austerity measures passed yesterday, with only one dissenting vote… In fact, a trader friend of mine (thanks S.M.L.) sent me a note that said the markets misread the story at first, and thought that the vote had failed, thus causing a brief, but quick weakening of the euro. But that all changed once the “true” story was produced.
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Will the Focus Now Shift to the US Debt Problem?
Front and center this morning… The Eurozone leaders gave the markets something that they liked last night. Well, at least the Asian, and now the European markets liked it. The US guys and gals are always a different story… But for now, the euro (EUR) is soaring and taking all the other currencies higher… The euro has reached 1.40 this morning, which is something given that in recent trading days when the euro was rallying it would stall out around 1.3950…
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