Tuesday, August 16, 2011

Euro will be dead by end of 2011

Germany debt © fintag

News comments:
Poor old Euro.

The Sugar Daddy that could keep it alive is going to let it die. As much as the leaders of France and Germany want to keep the love-in going, the German people are saying no. They already pay 5% a year reunification tax and if the way things are going continue, they can add another 10% Euro saving tax too.

Germany was assumed to be benefiting from the Euro. Very low unemployment for starters but it too has the "high debt, low growth" disease that most of the West is suffering from.

So looks like the FX community will have to work a bit harder next year as new currency pairs come to fruition.

A great idea was the Euro but as with all things socialist, there was too much politicking and not enough rules and punishment.

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That's another beer for me then ...

Today's shorts:
Germany falls short (bloomberg)

60% of Germans say no (telegraph)

Today's longs:
Cheap as chips equities to get even cheaper (reuters)

Gossip:
Germany to rebuild the Berlin wall.



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