no my friend.
why would she want a weak euro?
she net trade surplus. Weak euro means profit margins will be shaved.
but if the euro holds high vis a vis other currencies.
Then the victims would be countries with weak economies.
they outpriced to compete in trade. Worst is many asking for handout.(bail me please)
its clear, the euro need be weaker vis a vis.
Now the thingy that can happen is that they hold euro here and spin all other upwards
OR euro can drop carry all others pacing her pegged(like vs swissy), and no further sell...
My point was that stronger EUR would mean less German exports and shaved margins are still better than no margins
Imagine EUR with a weak Germany...
But you did nail it, IMHO - it's politics game, not bankers. Bankers plaid their game already - debt has been transferred to the public and now the ball is in the governments' corner. What scares me is that during the past couple of years things has been turning into situation beyond politicians' ability to handle. Elections are ugly business while in slowdown - the field gets full of hyenas. The way things are right now I can't see any of the PIIGS economies getting back on their feet any time soon in this environment. Greece's elections already rang the bell with a far left party getting such a large percentage of the vote. I wonder how long until Spanish youth, most of which has its time available as they are unemployed, gets really angry...
Do you think the EFSF and the LTRO would be enough to do the job now with Spain and Italy now officially in the bailout business?
S
about the youths.
