So the Eurozone.....

[royalfan5]

Is anybody besides me, and more than likely Chuck paying attention to this? It looks like Greece will get bailed out for now, but what about the rest of the PIGS? How much of a burden will the Germans want to shoulder? Will we see a bear run on the Euro? I'm not optimistic about the future of the Euro mostly because I don't think it is an optimal currency zone, and the weaker economies really could use addition central bank flexibility.

[Chuck Bao]

Yeah, I have had to write about it all this week. I agree with your assessment, Royalfan. And no, I don't have answers to any of your questions. Those are the key questions.

I have been cautioning stock market investors that a EU bailout is not a sure thing. It may not work or we won't know until there are more details and we have not been given any so far. I wrote yesterday that the rebound in the euro is not asured and that the dollar will likely gain back as the safe haven currency. Okay, that is not my opinion and I am no expert. It just seems like the most sensible comments that I have seen on various websites.

[RUSH LIMBAUGH is my clone!]

Maybe we can join the EEC, and get some mon from the Germans...for more stimulus, of course.

[royalfan5]

I'm not real excited about the prospect of a strong dollar. With the looming over-supply of the corn, bean, and wheat markets I would much rather have a weak dollar to drive overseas demand and to support domestic crush margins.

[Chuck Bao]

I'm not real excited about the prospect of a strong dollar. With the looming over-supply of the corn, bean, and wheat markets I would much rather have a weak dollar to drive overseas demand and to support domestic crush margins.

Currency market sentiment shifts very fast, so I don't know. But, Fed Chairman Ben Bernanke earlier this week signaled to the market that as the Fed rolls back bank support measures, it should translate into interest rate increases. That has, at least temporarily, helped to support the dollar. I think that is pretty much inevitable.

I don't know much about Europe. But, if I were a betting man, I would say that the dollar remains strong with the exception of Asian currencies. I do not know if the Japanese yen could gain much more against the dollar, but other Asian currencies should. Economic growth in Asia in 4Q09 was surprisingly strong and momentum seems to be building. Maybe these strong Asian economies will help to take some of the over-supply in US agri commodities.

The Bank of Thailand is apparently really worried about a strengthening baht. The Thai central bank announced just two weeks ago that it will lift some restrictions on foreign fund outflow in a bid to ease the pressure on a strengthening baht.

[tommieharris91]

Is anybody besides me, and more than likely Chuck paying attention to this? It looks like Greece will get bailed out for now, but what about the rest of the PIGS? How much of a burden will the Germans want to shoulder? Will we see a bear run on the Euro? I'm not optimistic about the future of the Euro mostly because I don't think it is an optimal currency zone, and the weaker economies really could use addition central bank flexibility.

I thought CNBC said the EU wouldn't do anything and revisit this later. :confused:

Could the Eurozone be too big right now?

[TheHumanAlphabet]

Frau Merkel apparently put the kabosh on the idea. No German money to the Greeks. Greece may have to sort out their own issues. Liberalism and Socialism in the land of Homer will likely require severe austerity measures and tax hikes...More strikes and riots in the land of Homer...

[royalfan5]

Frau Merkel apparently put the kabosh on the idea. No German money to the Greeks. Greece may have to sort out their own issues. Libaralism and Socialism in the land of Homer will likely require severe austerity measures and tax hikes...More strikes and riots in the land of Homer...

It's really nothing new for Greece. They were in sovereign default 95 of the first 105 years of modern independence. There multiple governments they have had over the years have wrecked the trust between the people and the government, and tax evasion is the national sport. Their right wing junta's couldn't keep a budget better than the current socialists.