Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.
yes I was just about to post that the impulse is looking south now... I started shorting on Friday initially on short term time frames but as there is no real indication to the contrary may as well hold and enjoy. .
If the stress tests are seen as weak then they would lose their credibility, and if they are too harsh then the currency markets could be spooked, making a fragile situation even worse.
'This is not reassuring at all," said Komal Sri-Kumar, who helps manage US$118 billion as chief global strategist at TCW Group in Los Angeles.
"I don't think the market is so stupid as to think that they were so wrong,"said Jason Brady, a managing director at Thornburg Investment Management in New Mexico, which oversees about US$57 billion. "The right explanation here is that the testing was not very rigorous."
Analysts and investors said the European tests might not have been strict enough because they ignored the majority of banks' holdings of sovereign debt. The evaluations took into account potential losses only on government bonds the banks trade, rather than those they are holding until maturity, CEBS said.
Lenders hold about 90 per cent of their Greek government bonds in their banking book and 10 per cent in their trading book, a survey by Morgan Stanley analysts showed.
They have to write down the value of bonds in their banking book only if there is serious doubt about a state's ability to repay in full or make interest payments.
Went all in on Fri night selling into the rally. Was a bit scary as it kept going up but was vindicated last night and took some profits to ensure I didnt blow out if I'm wrong
EWI say 'Friday's advance in the [Euro] also counts as a post-triangle thrust, so with Monday's decline the odds are increasing that the expected top has formed"
i just keep selling the Euro at the moment with no stops
a few days ago I had -200 pips on a few trades
but all came right pretty quickly
tonight I will start doing this again
check out this speech / tirade on the EU state from Nigel Farage (no I hadnt heard of him either)
but he nails all the things wrong and really twists the kniife. a barage from Farage. http://www.youtube.com/watch?v=7HB_L1cnCqs
from interest.co
i just keep selling the Euro at the moment with no stops
a few days ago I had -200 pips on a few trades
but all came right pretty quickly
tonight I will start doing this again
check out this speech / tirade on the EU state from Nigel Farage (no I hadnt heard of him either)
but he nails all the things wrong and really twists the kniife. a barage from Farage. http://www.youtube.com/watch?v=7HB_L1cnCqs
from interest.co
You went short? looks to just keeping going up and up.
I did , but wisely took a lot off at 1.2650
starting to slowly build up shorts again now , I may experience pain for a while but am reasonably confident it will fall hard when it does if I look at the daily chart I see a downtrend
but hey I could be wrong and I will reduce over 1.29
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Originally Posted by peat
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