Everyone at FR should be forced to read this article. I’m so sick of people, misinformed, that the usd weak is bad for the us economy. Good grief, just read what these strong currency folk think about their “great” situation.
Oh well, this currency thing is so out of hand right now, can’t last much longer. Pretty soon, Canadians will be buying up all of our r/e, the Japanese will buy all of our golf courses, and the Brits will buy all of our Fish and Chips stands. The humanity...
I am, of course, referring to the 1970s fiasco of ''sovereign loans''. The chairman of Citibank at that time, Walter Wriston, famously and wrongly said, as his reason for backing sovereign loans so strongly, ''Countries don't go broke''.
Technically he was correct. None of his sovereign customers declared bankruptcy, or, if you prefer, ''went broke''.
They did, however, one day simply decide not to pay back the loans. And Citi took a HUGE hit, willy-nilly.
It's probably a bit late to buy puts on Citi shares (but, one never knows how bad things might become for them...), but -- speaking as a professional trader -- look for a bottoming in Citi's share price to be a signal to start getting long in the USD.
Or not. Your choice. I've made mine, and will be doing exactly as discussed above in 3, 5, 7 months or so...depends on when Citi's share price starts making a bottom.
Good trading to you, and FReegards!
Exactly! I’ve been saying this for months, and that I believe it’s being done ON PURPOSE to break up the EU.
The pressures on Germany are amazing - Germany accounts for 90% of ALL exports of the EU, and they’re getting drug down like crazy right now.
Italy is the country that relies the most on exports, and they’re getting pummeled.
Make it such an economic penalty to be part of the EU, and you will split the EU apart. Add in Sarkozy and Mertel both being capitalists, toss in Poland’s penchant for complete economic freedom, and we have the makings of a split of the ONLY economic block that could pose a threat to overtake the US.
No, this devaluation is happening on purpose, to break the EU, and it appears to be working beautifully...