Euro Heading Down?

[Dridamse]

Re: Euro Heading Down?

I´m not sure about the euro breaking apart. I have been observing the Europhobics in the media from the UK very virulent lately. The worst the economic news from the UK the more news we get about how the E.U. and Euro are falling apart.
From the "totally independent and trustfull" Credit Rating Agencies like S&Ps etc lowering rates in the Eurozone and keeping the rates for USA and UK in the current situation. Same thing for the situation in Asia The chinese are going to eat themselves alive, India is going to war inside and outside and Brazilians will go back to the jungle.
Again looks like someone is trying to make look less bad the US and the Uk situation.
I´m not saying there are no problems in these places but when you compare with the sources of the news, the interests of the players and the cold economic data...
I don´t think that international big investors fall for these propaganda, maybe short term currency traders.
But who knows Propaganda many times work.

[santafe2]

Re: Euro Heading Down?

I´m not sure about the euro breaking apart. I have been observing the Europhobics in the media from the UK very virulent lately. The worst the economic news from the UK the more news we get about how the E.U. and Euro are falling apart.
From the "totally independent and trustfull" Credit Rating Agencies like S&Ps etc lowering rates in the Eurozone and keeping the rates for USA and UK in the current situation. Same thing for the situation in Asia The chinese are going to eat themselves alive, India is going to war inside and outside and Brazilians will go back to the jungle.
Again looks like someone is trying to make look less bad the US and the Uk situation.
I´m not saying there are no problems in these places but when you compare with the sources of the news, the interests of the players and the cold economic data...
I don´t think that international big investors fall for these propaganda, maybe short term currency traders.
But who knows Propaganda many times work.

The Euro can be enjoyed as art but it's not a currency. If there are "Europhobics", they are simply the media-useless. They may light their hair on fire, but the Euro is still a non-currency. It's an agreement among enemies to hate an outsider more than a cousin. Give it time. The Euro will not outlast the average human.

[GRG55]

Re: Euro Heading Down?

LOL...

Remember "Sub-prime is contained"?

Here's the Euro-language version of that Greek tragedy:

Provopoulos Sees ‘Limited’ Room for Further Rate Cuts

Jan. 19 (Bloomberg) -- European Central Bank council member George Provopoulos said the scope for further interest-rate reductions is “limited” and markets would be wrong to bet on the benchmark dropping to 1 percent.

While there is still “room to maneuver” on rates, “if the markets should be expecting us to cut as far as 1 percent or even lower, this is something different,” Provopoulos, who heads the Greek central bank, said in a Jan. 16 interview in Athens. “We have given no such indication. The scope for further cuts will be limited.” ...

...While Provopoulos didn’t rule out another half-point move, he indicated the ECB’s stomach for aggressive cuts is weakening. After 2.25 percentage points of easing since October, interest rates are “already at very low levels,” ...

...“I’m not excluding further reductions if inflation prospects warrant such reductions,” Provopoulos said. “But I should caution in the sense that some people interpret this as interest rates going close to zero, which is not true in our case.”...

I wonder where Provopoulos is spending his winter? He does not seem to be aware of what's been happening in recent months in Athens and elsewhere in Greece...

Too little, too late...

ECB Interest-Rate Cuts May Fail to Rescue Economy

March 5 (Bloomberg) -- The European Central Bank is struggling to keep up with the region’s plunging economy.

Even as President Jean-Claude Trichet and his colleagues prepare to cut interest rates to a record low today, the 16 nations that share the euro are mired in a recession deeper than envisioned in their worst-case scenario just three months ago...

...Meanwhile, a growing number of economists say the ECB risks becoming more a part of the problem than the solution as officials squabble over how much they can cut rates and whether to use more unorthodox methods to revive growth.

“The ECB remains vastly behind the curve,” said Erik Nielsen, chief European economist at Goldman Sachs Group Inc. in London, who estimates the ECB has cost the economy as much as 100 billion euros ($126 billion) by failing to act as fast as the Federal Reserve. “There’s no reason to waste any more time.”...

...Manufacturing contracted at a record pace last month, confidence is at an all-time low, unemployment is climbing toward 10 percent for the first time in 11 years and inflation, at 1.1 percent, is the weakest since 1999. Eastern European nations such as Poland and Hungary are suffering, too, jeopardizing a third of the euro area’s exports and $1.25 trillion in bank loans.

Europe’s economy has “come to a complete halt,” said Robert Barrie, chief European economist at Credit Suisse Group in London. “There’s a concern that if policy doesn’t respond, it won’t get better.”...