I don't see how it is possible for the #Eurozone and #Euro to go away, but this article is definitely a cause for thought. The Euro is flawed, a currency without a nation. That was madness to start with. But now, the ECB is literally protecting the bonds of all the Eurozone nations which are now used as collateral in many deals and in the derivatives markets. That is the glue that holds the project together. If that all goes bad we would see the mother of all margin calls as bonds thought to be pristine, were really just periphery bonds that deserved far higher rates. All you know what will break loose if this project fails. JMO.
Charles: How is $ better than #Euro for #Greece? Both give them too strong a currency for them to buy goods with. And using either currency, their exports are not competitive. The consequence will be what has happened with Euros, Greece runs out of dollars. Unless I am missing something, only solution: a weaker currency, like bringing back drachma..
USD/CAD Short In Profit After Canadian CPI Data
I have been long the #euro since it passed 1.20 my main concern is that its becoming a crowded trade.
The Euro Is Not Long for This World
I don't see how it is possible for the #Eurozone and #Euro to go away, but this article is definitely a cause for thought. The Euro is flawed, a currency without a nation. That was madness to start with. But now, the ECB is literally protecting the bonds of all the Eurozone nations which are now used as collateral in many deals and in the derivatives markets. That is the glue that holds the project together. If that all goes bad we would see the mother of all margin calls as bonds thought to be pristine, were really just periphery bonds that deserved far higher rates. All you know what will break loose if this project fails. JMO.
The Italian Job
Yes, getting rid of the #Euro is key. And if that results in the EU booting Italy out, then, oh well.
What Looks Crazy At First Might Be The Ideal Solution: Meet Greece's New Currency, The U.S. Dollar
Charles: How is $ better than #Euro for #Greece? Both give them too strong a currency for them to buy goods with. And using either currency, their exports are not competitive. The consequence will be what has happened with Euros, Greece runs out of dollars. Unless I am missing something, only solution: a weaker currency, like bringing back drachma..