Economics: you could see a virtual collapse of the Euro as the French demonstrate a singular weakness while the rest of their Euroweenie "allies" cower in their wine goblets, a site of unified weakness not seen since Munich in 1938. Remember, there is no Churchill in sight. This is NOT good news for them, or for us, but I hope Greenspan is ready because this Eurofada can destabilize entire economies. It is clear that the world has changed this week. As the COMEX opens for late Sunday trading, crude is down pretty big too. Remember, as the dollar goes up in value the oil cartel makes even more money, that's because they sell their oil for dollars. Something else to consider, there are an awful lot of large corporations AND COUNTRIES that are swimming in Euros and any sudden move will hurt them. Note on 11/7 @7:30 PDT The energy complex is down large, with heating oil off a full fifty cents from its highs. Problem is that it is still murderously high for people on the East Coast; consider I used to short at seventy five cents and go long at fifty two cents---current price is $1.76. People may freeze or go bankrupt.
2 comments:
Isn't a flight from the Euro bullish good news for the dollar?
-- david.davenport.1@netzero.com
Plus, as the dollar strengthens, oil becomes cheaper.
Screw the euro. Currency speculators made a ton of money after 9/11 weakened the dollar.
And the euro is an inherently unsafe currency anyway, given the underlying weakness of the EU countries' economies; might as well invest in Argentinian pesos.
-- Gun Guy
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