Euro leaders agree to open funds without austerity programs | Forex Factory

Euro leaders agree to open funds without austerity programs | Forex Factory

Euro leaders agree to open funds without austerity programs

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The German ATM machine is open!

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Jun 28, 2012 11:46pm

This hopefully is not the only solution drafted.

This is nice gesture on the lender countries' part to the borrower countries but it's not sustainable in the long run unfortunately UNLESS they have other additional strategies and plans in place to help the borrower countries to earn positive income to reduce the debt and narrow the deficit otherwise they are just going to keep on borrowing and eventually drag the lender countries down with them and Euro is still going to go down until it reaches parity with USD or even cheaper than USD. E/U will still be in worse shape than before.

The most important thing here to establish is the ability to earn for those borrower countries. As long as they are able to earn positive income, the amount of debt and deficit is not that unmanageable like now. Every country's got debt and the deficit even the "rich" ones but they have no problems. Why? They are able to make money. This I hope is what the Summit focused on.

Jun 29, 2012 1:45am

Quoting t13ru

Disliked

I agree, Eurozone needs structural reforms, bailout would not make weaker countries more productive.

Ignored

Thank you. I just hope those "EU leaders" see that. It's the FUTURE INCOME that matters. And they need to help those debt countries produce them fast. Once they can produce income, debt problem gets mitigated or solved automatically.

Jun 29, 2012 2:25am — Edited

Quoting BernardWG

Disliked

So, has anyone good ideas how Greece and Spain can ""produce"" themselves out of debt ? For Italy I am not so worried ...

Ignored

Idea 1: They need to move their a$$. Make themselves more efficient and effective. No more taking it easy. It would help if they need to compete against countries like China and Japan where people work 12 hours a day and with the productivity of 1 Chinese/Japanese = 20 Greek/Spaniard

Idea 2: Explore their natural resources. Be creative besides tourism. Harvest effectively from their natural resources for cosmetics, health products and etc. How come I have not heard of ONE natural organic facial cream or anti-cancer juice from either the Greek island waters and the Spanish Mediterrenean sea? Just examples. These countries know their own assets the best, I will let them figure it out. The bottome line is be creative and explore and then produce and then market. This, again, is where the other lender countries can help with their experience.

Idea 3: Science & Technology: Greece had invested heavily in science & technology before. Why did the R&D stop? This is where the other countries can help. Instead of giving Greece loans with harsh terms, why don't they make investment directly into Greece's science & technoogy? Greece is the cradle of mathematics. Where are the scientists and mathematicians? Today's world is all about math and engineering to make things better and faster. China is growing fast and do you know how large is China's investment on education of engineering? Google it and find out.

Idea 4: Alternative energy!! This ties in with natural resources harvesting and science & technology. Oil and coal are going to be so yesterday. The future is about clean, efficient and cheap alternative energy. Greece & Spain does not have oil but they might have something lot better than oil that's just waiting to be discovered. Imagine the income potential if it is.

Idea 5: Open themselves up with immigration for both legally & illegally. If you can't export your stuff abroad, why don't you import loaded foreign customers into your country? Both Greece and Spain has BEAUTIFUL climate and scenery, why don't they spruce up their countries and make themselves more attractive and easier to settle down for the rich? People shouldn't have to talk to 50 people and spend a month renting a simple apartment in Greece. Once you get more people settle in your countries, they will start to spend and there's your employment and income. The illegal immigrants will be cheap labour. Cheap labour means higher productivity. Why did China succeed? One big factor: cheap labour cuz of high population. Greece & Spain doesn't have it so import more people. Plus cheap labour needs to spend too.

Bottom line: The world is changing. To stay in the game, you need to adapt to the changes. Protect the history as much as you can but move forward at the same time. As long as you want to succeed, you WILL succeed. That's what I always believe in. And the rest of the lender countries, there is LOTS you can do besides handing out money.

Jun 29, 2012 2:33am

Quoting sisno13

Disliked

Yes but growth takes time

Ignored

Quoting Forexia

Disliked

And they need to help those debt countries produce them fast.

Ignored

This is where those "rich" EU countries should spend their money. To help those debt countries achieve growth faster.

Jun 29, 2012 7:23am

Quoting BernardWG

Disliked

Forexia Thanks ! Very good suggestions ! And indeed, these countries should and must change and adapt to the fast changing globalized world. Question is though are they willing to change ? Because that takes efforts on their side. Hopefully the younger generations will, and therefore also the old guard politicians need to go at some moment in time. Maybe, just maybe this is all, after some hard time, turning for the better. And again, let them borrow, without any structural reforms will not help at all. Great reply Forexia.

Ignored

Thanks for the compliment. They are gonna have to IF they want to survive. They won't have a choice. The current status quo is not sustainable regardless of austerity measures or not:

1) With austerity measures, debtor countries eventually will perish. No countries can survive without spending.

2) Without austerity measures, the lender countries will die. No countries is able to survive by spending more than they earn. That ATM machine has a withdraw limit and when that limit is reached, the machine will be empty and closed. And if these debtor countries can't produce enough income to support themselves they still perish.

I just hope those debtor countries can take advantage of this "no austerity" generosity to make the necessary investment for producing future income instead of squandering the money.

Jun 29, 2012 3:21am

These last two days are not conducive to my trading style. Every time some EU politician shoots his/her mouth off, the market jumps or ducks, then un-jumps and un-ducks when their spin doctors retract what they said. Chart patterns are meaningless in this bullshit storm.

Jun 29, 2012 4:09am

Quoting Sanguis

Disliked

Funny, but markets seem to think that 100bn in banks debts converted to ESM will solve Italy's 2 trillion Gov debt problem. Right... Friday!

Ignored

Well, obviously -- the solution to insolvency and outgo greater than income is to keep borrowing without limit. Isn't that what the Greek government has been saying all along?

Jun 29, 2012 12:48am

Quoting rsg10z

Disliked

i dont get it with those who keep saying "manipulation". even from the very first time forex market was started, it has been full of manipulation. Keep whining about "manipulation" won't change that fact. Most traders are losers and if we want to be included in the small part of winners what we need to do is try to predict the chart movement. and yes, that's including predict the manipulation.

Ignored

Nice say...wish I got a crystal ball..

Jun 28, 2012 10:49pm

Quoting JahDave

Disliked

It's more smoke and mirrors.......Germany cannot bail out all of the PIIGS for free.....It seems like Germany is planning to follow the U.S. plan for creating tons of money from nothing.........This will only make the reckoning much worse, and put our children in an unpayable debt situation...

Ignored

Don't worry about our children; All debts will be forgotten and forgiven - revolution is inevitable.

Jun 28, 2012 10:25pm

Quoting Forexia

Disliked

Well I guess George Soros' whacking stick really works! One swash in the air and the entire EU bows down to him. Good old george's made another billion, that's for sure.

Ignored

that's true. thank you.

Bruum, bruum, bruum ...

Jun 29, 2012 2:06am

I don't think it's sustainable to pile debt with more debt. The rally is welcome but I'm very cautious. What they've done is too buy some more time for the debt ridden countries! As it is, German are already feeling the heat of the Euro Zone in Job cuts etc...

Jun 28, 2012 10:23pm

Europeans are manipulators, they always defend their currency with lies. Europe is crashing down. Germans have problems sustaining their daily live with the current economy, france also has the same problem and they keep defending that they can prevail? when it comes to money, europeans can say anything... this is sick manipulation of words.

Jun 28, 2012 10:33pm

Aside from this one sentence news headline here on forex. Where is there any more information on this?

Jun 28, 2012 10:23pm

Well I guess George Soros' whacking stick really works! One swash in the air and the entire EU bows down to him. Good old george's made another billion, that's for sure.

Jun 29, 2012 3:05am

Forexia - nice to see someone is getting their minimum daily requirement of intelligence and common sense.

Jun 29, 2012 3:45am

Thanks for the tip, Bernard, I'll check it out.

Jun 28, 2012 10:25pm

Nein, yes, no, nein, yes, nein, no, yes, yein, nes, whatever.

Jun 29, 2012 6:03am

We always have to thinks positive......because no any country need to go too much down and another up too much high....which never maintain the eco-system of the world...so, god also manage after very ruin and very polts ......its time to eur up...coz world want it...

Jun 29, 2012 4:56am

this is exact situation as with the swiss bank intervention...
they are heavy selling it now, meaning eu will update the monthly low very soon

Jun 29, 2012 7:16am

ur absolutely correct, only dumb traders really believe in intervention reversals, guess what, the trend will never be reversed by intervention, apart from physical currency stamping...

Jun 28, 2012 10:19pm

AHAHAHAHHAHAHAHAH

For me it's over for today, going buy my new aston martin DBS.

Jun 29, 2012 12:49am

Quoting Yeow Boon

Disliked

i am very surprised the markets reacted so strongly just based on what the EU politicians had said after 1 day of meeting.

my question to all of us, "Who is going to foot the bill of all these banks/govt bailouts?"

if you think Germany will open its floodgate, think again.

Ignored

Dont think much, just react to bars no one is going to listen , is all in hand of world Politician

Jun 29, 2012 1:06pm

The EU plan was “a decisive solution using a fund that doesn’t exist to buy debt that won’t be repaid via a mechanism that has yet to be agreed upon.

Jun 29, 2012 12:18am

i dont get it with those who keep saying "manipulation". even from the very first time forex market was started, it has been full of manipulation. Keep whining about "manipulation" won't change that fact. Most traders are losers and if we want to be included in the small part of winners what we need to do is try to predict the chart movement. and yes, that's including predict the manipulation.

Jun 28, 2012 10:10pm

@cats_pips : hahaha rofl

Jun 29, 2012 1:30am

The Germans had similar experiences with the former DDR. Billions of Euro's went in, without much real growth and good results. Just writing checks will not help, and mind you, the northern countries will suffer the most, because they are already heavily taxed on so many aspects, and eventually they have to pay, and pay and pay. Again, as I wrote in earlier posts, just raising taxes in Italy and Greece on property alone will bring in billions of Euro's for these governments. It just needs courage from the respective governments to take real structural changing steps in their country and face the crowd. Problem is we are dealing with politicians and so much different cultures ... there is no beginning nor hope for this. I am sorry Mrs. Merkel has to bite in the sand for this. Her ideas and plans are/were good, however the markets will not wait and push the southern nations in the abyss with high interest rates.

Jun 29, 2012 3:15am

Forexia Thanks ! Very good suggestions ! And indeed, these countries should and must change and adapt to the fast changing globalized world. Question is though are they willing to change ? Because that takes efforts on their side. Hopefully the younger generations will, and therefore also the old guard politicians need to go at some moment in time. Maybe, just maybe this is all, after some hard time, turning for the better. And again, let them borrow, without any structural reforms will not help at all. Great reply Forexia.

Jun 29, 2012 2:42am

so any1 catched the pips,because i was sleeping here in my home...

Jun 29, 2012 3:45am

The ONLY 2 things you need to know about #Euro zone deal: it means 1) More debt, & 2) No Growth. Anything else is speculative.

Jun 29, 2012 3:48am

Funny, but markets seem to think that 100bn in banks debts converted to ESM will solve Italy's 2 trillion Gov debt problem. Right... Friday!

Jun 28, 2012 10:08pm

S&P is gonna have a little gap up tomorrow. Woot! Here we go!

Jun 28, 2012 10:34pm

we are likely to see 1.2740's anyway. My broker wouldn't fill me on the spike.. fxcm peckrheads.

Jun 28, 2012 10:40pm

This is one hell of movement . Amazing . Maybe next week it will go short like this crazy ....

Jun 28, 2012 10:17pm

It's more smoke and mirrors.......Germany cannot bail out all of the PIIGS for free.....It seems like Germany is planning to follow the U.S. plan for creating tons of money from nothing.........This will only make the reckoning much worse, and put our children in an unpayable debt situation...

Jun 28, 2012 10:30pm

The aussie is in a triangle on the 5 minute chart, so that means that there will be one more short term push up and then everything will continue as before...I am actually surprised this will not make a bigger impact...

Jun 28, 2012 10:40pm

Quoting southbeach

Disliked

Europeans are manipulators, they always defend their currency with lies. Europe is crashing down. Germans have problems sustaining their daily live with the current economy, france also has the same problem and they keep defending that they can prevail? when it comes to money, europeans can say anything... this is sick manipulation of words.

Ignored

god bless eur.

Jun 28, 2012 10:44pm

Quoting shahram_s

Disliked

... what time is it now in the euro zone ? are they awake to make decision at this time?

Ignored

Its 5:41 I am almost sure they are sleeping afer looooong night well ... not necesarilly at work if our leaders are doing their jobs it is once a week usually before lunch...

Jun 28, 2012 10:45pm

wooooo eurusd rally almost 200 pips up!! oh man!

Quoting dk58198

Disliked

Could someone please take a second and explain where all this new money is going to come from. Seriously not even Germany can have that much to give.

Ignored

Dont u see billions dollar spinning in forex market a day!

Jun 28, 2012 11:00pm

Agreed sarkel. Debt will have to be written off worldwide because no countries can repay it.... It will will be very interesting to see which country shafts which other country in all of this. I suspect the weaker countries will get the shaft...

Jun 28, 2012 11:32pm

i am very surprised the markets reacted so strongly just based on what the EU politicians had said after 1 day of meeting.

my question to all of us, "Who is going to foot the bill of all these banks/govt bailouts?"

if you think Germany will open its floodgate, think again.

Jun 28, 2012 11:32pm

It was the EU headlines. If the market is mostly short and something "positive" for short term liquidity happens you get spike... It doesn't seem like manipulation if you are on the other side of it i suppose too

Jun 29, 2012 12:55am

Quoting Aaryan

Disliked

Dont think much, just react to bars no one is going to listen , is all in hand of world Politician

Ignored

yeah, they had 19 such meetings earlier, none solved the problems. if the problems can be solved by 1 meeting, they do not need the 20th one now. If i am a German tax payer, i don't think i would be very happy now.

Jun 29, 2012 1:31am

Quoting Forexia

Disliked

This hopefully is not the only solution drafted.

This is nice gesture on the lender countries' part to the borrower countries but it's not sustainable in the long run unfortunately UNLESS they have other additional strategies and plans in place to help the borrower countries to earn positive income to reduce the debt and narrow the deficit otherwise they are just going to keep on borrowing and eventually drag the lender countries down with them and Euro is still going to go down until it reaches parity with USD or even cheaper than USD. E/U...

Ignored

I agree, Eurozone needs structural reforms, bailout would not make weaker countries more productive.

Jun 29, 2012 2:53am

Quoting Forexia

Disliked

The most important thing here to establish is the ability to earn for those borrower countries. As long as they are able to earn positive income, the amount of debt and deficit is not that unmanageable like now.

Ignored

by making the funding affordable ! pointless exercise lending money at such a rate of interest that is unaffordable and further cripples any chance of recovery by the borrower, ah, maybe thats what they want?

Jun 29, 2012 4:16am

i sincerely hope that people will not be burnt by going long on risks... we should know these politicians too well by now. i doubt Germany will be agreeable to foot all the bills, it just does not make sense to them.

Jun 29, 2012 4:24am

Quoting Yeow Boon

Disliked

i sincerely hope that people will not be burnt by going long on risks... we should know these politicians too well by now. i doubt Germany will be agreeable to foot all the bills, it just does not make sense to them.

Ignored

I went long at .2415 and closed above .26, what's the risk about. It was expected

What I analysed yesterday came true again yet again. Typical EU summit pattern, big dropped 200-300pips and big pop north.

It's going to take time for market to go back to south again, the hopium is too high. It's based on empty HOPE, nothing else.

Jun 29, 2012 4:27am

Quoting jonahky7

Disliked

I went long at .2415 and closed above .26, what's the risk about. It was expected
What I analysed yesterday came true again yet again. Typical EU summit pattern, big dropped 200-300pips and big pop north.

It's going to take time for market to go back to south again, the hopium is too high. It's based on empty HOPE, nothing else.

Ignored

congrats to you.

just don't stay long for too long.

Jun 29, 2012 8:56am

Quoting Ramshankar

Disliked

what about eur trend now? now more up?

Ignored

If this is the same as the last EU summit, then expect the result to pop north for a week then it will start to slide lower then last week.

Looks more and more like before, of what's happened. All pack of idiotic hopium. But ride on it while you can. It won't be here for long

Jun 29, 2012 10:40am

Quoting Yeow Boon

Disliked

congrats to you.

just don't stay long for too long.

Ignored

matey, if you know the game and analyse the data a bit more, you are more likly to get it better. Not for a 370pips, mainly buy and sell some along the way, for a single day trade. Have a good weekend

Jun 30, 2012 9:25am

The real story lads is the massive stock rallies we are about to see becasue interest rates and inflation are going to reamin low for the forseeable future -- meaning loans and energy costs will be cheap -- because QE works --- just has it did after World War II. And Biren.Nepal is correct there is a God above! The Euro however? It's a bear market you know...

Jun 28, 2012 10:56pm

this is nothing but shit...i dont like this type of market behavior, they might be eating shit, that's why they act like this, creating huge uncertainty. bloody axx holes

Jun 28, 2012 10:59pm

I could not make trade from yesterday.

Jun 28, 2012 10:25pm

later on after the big politicians made their share of the pie, eur/usd will retrace back with other kind of words...

Jun 28, 2012 10:52pm

Inside trading!!!!! that is billions that moved this market 200 pips in few minutes. Decision was probably made last night and news came later on at 5 am their time lol.

Jun 28, 2012 9:56pm

wow ...little agreement and big move up

Jun 29, 2012 5:21am

yes this is good news for euro...

Jun 28, 2012 11:17pm

agreed on money printing and euro is up ! I just love forex market

Jun 28, 2012 10:11pm

AAAAYYYYYYEEEEEEEE!!!!!!!!!!!!

Jun 29, 2012 1:48am

So, has anyone good ideas how Greece and Spain can ""produce"" themselves out of debt ? For Italy I am not so worried ...

Jun 28, 2012 10:01pm

yesterday : no no no today : yes yes yes interestinggg

Jun 28, 2012 9:54pm

EU shoot up ..

Jun 28, 2012 9:56pm

... what time is it now in the euro zone ? are they awake to make decision at this time?

Jun 28, 2012 9:58pm

good for me...

Jun 28, 2012 10:08pm

Lets Go EURO.... the show must go on... Buy Euro, on monday Euro be 1.300

Jun 28, 2012 10:12pm

Could someone please take a second and explain where all this new money is going to come from. Seriously not even Germany can have that much to give.

Jun 28, 2012 10:28pm

Absolutely, this is just a spike... I don't think the trend will change from this.

Jun 28, 2012 10:32pm

wooooo eurusd rally almost 200 pips up!! oh man!

Jun 28, 2012 10:46pm

Quoting cppolybd

Disliked

This is one hell of movement . Amazing . Maybe next week it will go short like this crazy ....

Ignored

It is crazy someones AOS gone haywire...

Jun 28, 2012 10:56pm

[quote=moaf;5799926]that's true. thank you.

I would not bet on Soros I think at least on JPY pairs it might be BOJ action against Yen.

Jun 28, 2012 10:59pm

this is not intervention or manipulation. this is the market pricing in nothing and when something happens it is good news in the short term.

Trader#A7D0

Jun 28, 2012 11:17pm

During a mostly quiet Asian session,virtually every currency pair spiked, some almost 200 pips in a matter of seconds ...Something really weird happened..Was either a natural disaster or a major "big boys" market manipulation.

Jun 29, 2012 12:47am

nonsense

Jun 29, 2012 1:14am

I'm bloody sure the Germans didn't agree and without them the rest are stuffed!

Trader#7FED

Jun 29, 2012 1:28am

Quoting Forexia

Disliked

This hopefully is not the only solution drafted.

This is nice gesture on the lender countries' part to the borrower countries but it's not sustainable in the long run unfortunately UNLESS they have other additional strategies and plans in place to help the borrower countries to earn positive income to reduce the debt and narrow the deficit otherwise they are just going to keep on borrowing and eventually drag the lender countries down with them and Euro is still going to go down until it reaches parity with USD or even cheaper than USD. E/U will...

Ignored

Quoting Forexia

Disliked

This hopefully is not the only solution drafted.

This is nice gesture on the lender countries' part to the borrower countries but it's not sustainable in the long run unfortunately UNLESS they have other additional strategies and plans in place to help the borrower countries to earn positive income to reduce the debt and narrow the deficit otherwise they are just going to keep on borrowing and eventually drag the lender countries down with them and Euro is still going to go down until it reaches parity with USD or even cheaper than USD. E/U will...

Ignored

It's more smoke and mirrors.......Germany cannot bail out all of the PIIGS for free.....It seems like Germany is planning to follow the U.S. plan for creating tons of money from nothing.........This will only make the reckoning much worse, and put our children in an unpayable debt situation...

Jun 29, 2012 1:29am

They are stuffed..........

Jun 29, 2012 1:30am

Noone or any government can stop what is coming,,,,,,,no matter what they say in public...

Jun 29, 2012 1:48am

Yes but growth takes time

Jun 29, 2012 2:00am

They cannot... The world is going into deflation............... for at least 25 years.,

Jun 29, 2012 5:34am

it was only a matter of time before the Gerry's came 'round

Trader#C200

Jun 29, 2012 6:20am

I guess eur up temporary, let's see if Greek out of euro is only just a matter of time.. The more time it run, the higher debt increase, you cannot imagine it! careful about breaking 1,2288 (maybe next week/month?) goes to 1,19. Don't be happy, remember, its only rise temporary

Trader#40A4

Jun 29, 2012 7:38am

"ur absolutely correct, only dumb traders really believe in intervention reversals, guess what, the trend will never be reversed by intervention, apart from physical currency stamping..."

yes, impossible if eur suddenly bullish, it doesn't any make sense. What about the people in greek who suffering from high tax and other pressure because to avoid bombing debt? insane I guess. The higher euro rise, the deeper it go down

Jun 29, 2012 11:49am

still holding long eur. How about a pop way above 1.27 for a switch. This load is getting heavy.

Trader#7AA9

Jun 28, 2012 9:53pm

open without the need to enter PIN...

Trader#8EAC

Jun 28, 2012 9:59pm

IT is about 5 am

Trader#464F

Jun 28, 2012 10:01pm

... what time is it now in the euro zone ? are they awake to make decision at this time?

The Algos never sleep

Trader#FB37

Jun 28, 2012 10:15pm

Germany lost the bet at the semifinal match so they have to agreed hahaha

Trader#E5DC

Jun 28, 2012 10:23pm

Total BS once again. Market makers just wiping the tables clear of all the retail sellers. This is profit taking at its best. All BS! Forex market is not regulated and its about time it gets done.

Trader#5272

Jun 28, 2012 10:27pm

more talk...which is cheap. My suggestion: Just get it over. Those who can stay in the euro, stay in. Those who can't - wants to be leeches and get a free ride.

Trader#788C

Jun 28, 2012 11:00pm

if decesion really positive, the bull win move
now look stuck ...
nevermin it friday after all

Trader#7677

Jun 29, 2012 1:25am

So what Germans buy from them ?

Trader#7677

Jun 29, 2012 1:30am

Hmm, but why EUR/CHF is not spiking

?

Trader#7677

Jun 29, 2012 4:01am

Added short coup[le minutes ago, as expected euro giong again up. Expecting more "GOOD" news to fire it more up.

Trader#C101

Jun 29, 2012 6:13am

And with that, Europe is fixed! All of the problems of the last 4 years are solved. What a freaking crock!

Trader#AB41

Jun 29, 2012 7:14am

EOQ window dressing, this to shall pass.

Trader#87BD

Jun 29, 2012 8:24am

European....Very creative economy management...

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Jun 28, 2012 9:51pm
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