Originally Posted by
tsquare
Yeah.. it's all good right now. Wait until the "Super Comittee" (I have a hard time typing that with a straight face) finishes doing.. well.. nothing.. and that becomes page 1. Even that being said though, I am optimistic.
T;
You are right, this europe thing doesn't end well. It is far from over. IMO the market is rising right now on dollar weakness alone. When the exuberance fades, and the dollar regains ground against the euro, we'll be back on the seesaw.
Initially, the whole europe "crisis" will seem to end when Greece gets kicked off the euro - Merkel's plan - Greek debt at 120% of GDP by 2020? That's a plan? Currently, they are at 180% of GDP.
Bailout funds invented out of thin air by 3X leveraging of the existing bailout fund...theoretically by issuing bonds? This sounds to me like a can kicked down the road using derivatives (all over again). European banks dont have to have funds to cover loans until next June. (Voluntary) Greek bond haircuts of 50%?
The euro was not invented as a print yourself out of debt currency. The EU will have to radically change their treaties if that is to happen.
Then comes Italy, belgium, spain, portugal and ireland.
May you live in interesting times.