A Trillion Dollars and the EUR moved only this much?

[palenimbus]

The EURO didn't move much, however the the sovereign yield spreads on the peripheral eurogroup countries (PIGS) have fallen DRAMATICALLY.

It makes sense if you think about it, the eurogroup is shifting the burden from the PIGS to everybody else, basically spreading out the pain. So net-net the euro currency is in the same position as before. In fact, probably worse due to the inflationary effect of this program which is for all intents and purposes quantitative easing.

 

[Martinghoul]

Quote from palenimbus:

The EURO didn't move much, however the the sovereign yield spreads on the peripheral eurogroup countries (PIGS) have fallen DRAMATICALLY.

It makes sense if you think about it, the eurogroup is shifting the burden from the PIGS to everybody else, basically spreading out the pain. So net-net the euro currency is in the same position as before. In fact, probably worse due to the inflationary effect of this program which is for intents and purposes quantitative easing.

+1

 

[crash n burn]

Quote from Ivanovich:

I would suggest you not let your nationalist view cloud reality. The Euro experiment is doomed for failure. It was since it's creation. One central bank cannot dictate the rates for multiple economies across a broad (very broad) spectrum of growth rates. Add to that stark differences in the entitlement programs in countries in the Club Med region and those in Germany, and all you have is a recipe for disaster.

Greece, Portugal, Italy and yes, your precious Spain, will all have to revert back eventually.

what?

revert because of what?

these economies have been adjusting for years to the Euro monetary policy, which basically annihilated their industrial production the same way china ruined most of USA industrial production. nowadays these countries have built an impressive tourism and services industries that serves most of the nordics aspiration of having a friendly retirement/destination. the new economic balance between peers in the EU zone has been crafted for years and is being implemented as planned.

the euro is much more than single currency. this is a question of identity. e.g. yesterday the portuguese PM announced he will cancel the new international airport project just to slash the deficit by 200bp the coming years. i dont see obama doing the same thing for his indebted economy...

 

[m22au]

Going back to the cheerleading: June 2010 futures low of day = 1.2758, only a small amount above Friday's close of 1.2740.

It would be funny if it can break below 1.2740 in the next 24 hours, given the size of the bailout package.

 

[ASusilovic]

Quote from palenimbus:

The EURO didn't move much, however the the sovereign yield spreads on the peripheral eurogroup countries (PIGS) have fallen DRAMATICALLY.

It makes sense if you think about it, the eurogroup is shifting the burden from the PIGS to everybody else, basically spreading out the pain. So net-net the euro currency is in the same position as before. In fact, probably worse due to the inflationary effect of this program which is for all intents and purposes quantitative easing.

 

[m22au]

Quote from m22au:

Going back to the cheerleading: June 2010 futures low of day = 1.2758, only a small amount above Friday's close of 1.2740.

It would be funny if it can break below 1.2740 in the next 24 hours, given the size of the bailout package.

Just some more cheerleading: EUR/USD June 2010 futures touched 1.2724 just after 6.30pm ET, below the close from Friday 7 May.

As some other posters have mentioned, the bailout just reduces the sovereign risk in the PIIGS and transfers it to the stronger EMU countries. And it took the EUR/USD about 24 hours to do a round trip from 1.2740 to 1.3097 to 1.2740 again.

 

[number22]

unless EUR skyrocketing, I don't see US stock raising much more, most S&P earning come from overseas. Weaker USD have helped a lot in those earning.

 

[CET]

Quote from polpolik:

Poor Germany, having to clean up the mess of their greedy neighbors.

IMO the only reason Germany is participating is to bail out German banks holding Greek debt. Greece's debt should have been restructured. Taxpayers in all the countries participating directly and through the IMF are the ones getting screwed.

Lil ole Greece has now gone from the cradle of democracy to the cesspool of socialism. :eek:

 

[endsongs]

With the private economy penniless and the private banks not lending, it seems like the central banks are the last backstop. Think the ponzi is about up?

 

[m22au]

At the time of writing, EUR/USD is below 1.2700, and less than 2 US cents from last week's low of 1.2520 or so.

Just wondering what happens next if it breaks below 1.2500 by the end of the week - how about a 10 trillion Euro bailout package next weekend?