Coming as no surprises downgrades are afoot in Europe. Credit ratings of various European countries are being downgraded. This has been coming for quite some time, it's in no way surprising.
Interestingly enough, rather than cutting spending, we are seeing more options for printing and tax increases happening in Europe.
The Euro continues to fall against the US Dollar probably largely due to market sentiment. When it comes down to it, I'm not sure how any investor can tell the difference between the Dollar and the Euro, both central banks seem to be interested in printing rather than solving the actual problems that led to this mess.
Adding to that that SHORT EUR/USD is a rather crowded trade. Are you shorting the Euro, or do you see a chance for redemption coming soon?
“both central banks seem to be interested in printing ” Are you aware that the central bank of europe can not print, as europe is not federal, and that’s why our president Mr Sarkozy is trying for years now to convince the germans to allow the bce to print. you can’t compare US/EU like you did. the whole problem comes because we do not have any bank that can “print” , and our nations are not allowed to do so either, because germans dont want to pay for others. Thats how you , US managed to get very low interested rates by printing, but in our situation , we cant.
Hi Ted,
There are more ways to “print” than just printing. There are other ways to play with the money supply. That is what I was referring to. Thanks for commenting!