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Thread: EU to Set Up Fund to Prevent Spread of Greek Crisis

  1. #21
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    Re: EU to Set Up Fund to Prevent Spread of Greek Crisis

    well, then, you got what you wanted

    of course, there was zero chance you'd hear any different

  2. #22
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    Re: EU to Set Up Fund to Prevent Spread of Greek Crisis

    trouble is, talk, unlike bailouts, is cheap

    worthless, actually, kinda like greek, spanish and portuguese paper

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    Re: EU to Set Up Fund to Prevent Spread of Greek Crisis

    Just over a month after some in the financial community joined the mini-panic that had engulfed currency and debt markets in forecasting a breakup of the European Union or plunge to dollar parity in the Euro, it increasingly appears that the establishment of the EU fund has finally calmed nerves. With Germany and France, among others, committing themselves to address their budget issues and Spain just having a successful debt offering, it appears that the mini-panic has ended. This morning, the Euro is reaching for $1.24 after having fallen to just under $1.19 during the worst of the Euro debt mini-panic.

    As frequently is the case, those that got swept by the emotions driving markets at the time and lost sight of underlying fundamentals (challenging but not grim and hopeless), face seeing their dire predictions stranded by reality. Even as more challenges lie ahead, the easing of the mini-panic provides yet another reminder that market developments are in part driven by fundamentals, but in part (sometimes the larger part) driven by psychology. Moreover, psychology can be fickle.

  4. #24
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    Re: EU to Set Up Fund to Prevent Spread of Greek Crisis

    Quote Originally Posted by donsutherland1 View Post
    The EU agreed to set up a foreign exchange stabilization fund to help defend the Euro on foreign exchange markets. While it remains unclear whether speculation, more than uncertainty, had been driving the Euro lower, there have been cases in the past where explicit or implicit currency guarantees have been attacked by speculators to test the credibility of such guarantees. It remains to be seen whether some could test the EU's resolve.

    At the same time, the decision signals that the European Union is determined to preserve the common currency. IMO, this decision undermines arguments made by some that the Greek debt crisis would shatter the European Union.

    From Bloomberg.com:



    EU to Set Up Fund to Prevent Spread of Greek Crisis (Update1) - Bloomberg.com
    LOL... a Fund... from where will they get the money? Germany again?

    How about fundamental restructuring of their welfare states?
    Start by freezing everything for 5-years.
    Then start paring away at the fat, ideally with a chain saw, but even a scalpel will do.
    A thousand small cuts to a frozen corpse can lighten the burden some.

    A fund... ROTFLOL... while Rome burns they create a fund to feed the fire...

    .
    The Clintons are what happens...
    when you have NO MORAL COMPASS.

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    Re: EU to Set Up Fund to Prevent Spread of Greek Crisis

    Quote Originally Posted by zimmer View Post
    LOL... a Fund... from where will they get the money? Germany again?

    How about fundamental restructuring of their welfare states?
    Start by freezing everything for 5-years.
    Then start paring away at the fat, ideally with a chain saw, but even a scalpel will do.
    A thousand small cuts to a frozen corpse can lighten the burden some.

    A fund... ROTFLOL... while Rome burns they create a fund to feed the fire...

    .
    The fund was not created to address the debt crisis, but to alleviate the panic that was developing so as to buy the highly-indebted countries some time to address their fiscal imbalances. It remains to be seen whether all of those countries will make sufficient progress toward that end. The fiscal consolidation process is still in its very early stages. I suspect that a mixed outcome on that front is more likely than not e.g., among other things, some but not all of the highly-indebted countries will meet their deficit reduction targets within 3 years.

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