What Is Happening to EU the Euro

[Decadent Ambition]

What the hell is happening at the ECB? Why aren´t they going the bernanke way and are letting Greece bleed out. So much for the iconic Euro. Phucking european slow cunts.

 

I don´t know which was more disgusting today, the timid Italian/Irish/Spanish also contributing to Greek bailout even though they themselves are sinking in their own debt or that silly london bond trader on tv who said the rumor on the street is that the ECB will use QE (print or create electronic money) to buy Greek Bonds.

 

I guess if you can´t beat them join them. Time to short spain´s BBVA & STD which for now on short term are overrsold but with no support nearby, definately back to early 2009. Double dip baby & thank God the US has good ol´ Zimbabwe Bernanke!

Discuss

[FatB]

"thank God the US has good ol´ Zimbabwe Bernanke" sory what do you mean?

 

the more the uro fall the cheeper my holiday is gona be cant complain about that, fall baby fall

[General Duke]

These *******s are messing up my investment portfolio. I had it all worked out...now..

[NASSIR]

I read an NPR article in response to the Greece’s debt crisis. It said that SEC officials had launched an investigation on the role that Goldman Sachs and several other banks had played during Greece’s accession to the European Union. EU officials first complained to the Fed that Goldman Sachs devised the derivative instruments to conceal the extent of Greece’s sovereign debt. Goldman sold to the Greece government a financial instrument known as cross-currency derivatives to help her conceal a large portion of its national debt.

 

Though it is perfectly legal to sell such instruments, the Greece government used it in her bid to join the EU. According to the article the Federal Reserve Chairman Bernanke testified before the Senate Banking Committee and said that his department will take a serious look into these allegations and possibly determined whether Goldman Sachs and its affiliates had any bearings on Greece’s fiscal and debt crisis. There has been a huge concern on the Greece’s financial health and its contagious effect on the Euro Community or whether member countries would commit to shoulder the burden of its bailout.

 

It is also alleged that two financial instruments arranged by the alleged banks have helped Greece conceal its government debt from EU regulators and investors. The cross-country derivative is one of them. It creates an off-balance sheet, which basically transfers a government debt from its balance sheet account. The instrument therefore improves the solvency of the government. In this case, investors that initially purchased and held government issued bonds found that they were on the wrong end of the stick and immediately sold them in the secondary market.

Another instrument that Goldman Sachs arranged was the credit-default swap, a derivative security that functions as insurance against a possible loss of an underlying assets or liabilities. Investors do not have to hold a government bond or own shares of any government bond.

They can however trade on these instruments in the open market and bet on swaps held against a borrowing entity. In this case, the risk rate of Greece bonds had soared and its market value traded far below its real value. EU officials allege that were it not for the Goldman Sachs’ role, the current debt crisis of Greece would have been reversible.

 

Fed chairman Bernanke defended the Goldman's arrangement to hedge Greece against market perceptions, but he openly criticized its use to destabilize a country like Greece. Amazing developments so far..

[N.O.R.F]

With the prospect of a hung UK parliament on Thursday night things can only get better (when the pound drops)

 

Go dollar :cool:

[Decadent Ambition]

Amen to that Norf. I am actually looking a little further though at the thought of the US/EUR parity this year. What do you think?

 

Or my latest wet dreams of seeing Germany leaving the Euro when the bleeding starts in Portugal, Ireland, Spain, Italy. A field day for fx traders and global macro funds and Insha Allah will happen. Amen

[Khayr]

Sell sell sell then buy buy buy....

 

Very turbulent markets

 

Goldman Sachs are the masters of it all. They are the illumanatiiiii!

 

The EU is dropping fast and so is the english pound (the most stable currency in the world, even though the U.S. dollar is the bench mark of all currencies).

[General Duke]

I will make a killing in a few weeks.

[Dhagax-Tuur]

When have you all learned to play the markets? Cajiib!

 

Europe runs the world, for now, sxbayaal. Don't be fooled. They can put a stop to this, if they wish to. And believe they will. The boat is going to be turbulent, but it ain't gonna sink. They will pull out of this. Mark my words.

[General Duke]

^^^No one doubts that adeer, its good to buy, buy, buy right now when its down.

[Dhagax-Tuur]

Don't call me, 'adeer', please.