Browse > Home / Economy, Markets / Video: EURO unraveling?

Video: EURO unraveling?

October 10, 2008 6:01 pm

What was supposed to be the world’s currency from a grand plan that brought together the major European economies new may have more risk than ever. Remember, early on, after a shaky start the Euro bounced back and was slated to take over as the world as the central currency.

Once again, poorly calculated assumptions on top of shabby financial work with little or no accountability is creating a real problem for the Euro region. This is especially concerning as each of the Euro members have different motives and while there are many important reasons why all parties need to act in a concerted manner, it may not be the outcome as protectionism will probably prevail.

From the Wall Street Journal:

Be Sociable, Share!

Sorry, No Related Posts.

Disclosure: This material is provided for information only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. This material is not a complete analysis of all material facts respecting any issuer, industry or security or of your investment objectives, parameters, needs or financial situation, and therefore is not a sufficient basis alone on which to base an investment decision. Horowitz & Company clients may hold positions (long or short) in investments discussed.
Please click for detailed disclosures and additional information about our stock ratings and scoring.

Written by Andrew Horowitz · Category(s) Economy, Markets    |  Tags: •   

2 Responses to “Video: EURO unraveling?”

  1. lisa white on October 12th, 2008 7:24 am

    Dear Andrew,

    Why with this video from Market Watch are you adding to the nonsense and misinformation? Britain is going to advise Euro monetary policy when its own currency is out there in the wind and its economy is heading south.

    Do people really believe any economy based on borrowing and debt whose government has taken over its financial sectors buy bad debt and promises to print as much money as necessary will have a stronger currency than the Euro?

    Market Watch features a Brit. Hello, they don’t have Euro’s. They are extremely critical and fiscally threaten by the Euro. Their currency continues to lose ground to the Euro.

    Please correct me if I am wrong but Italy has been faced with abandoning the Euro and remains up in the air. France’s credit sector is not in ruins but better than most. The bank that purchased CitiBank Germany nationwide is French and the standing ironical joke is that those of who have accounts can finally return to a bank whose assets, worth, and cash are real.

    Again tell me if I am wrong but when it comes to real assets and value Poland is in a stronger position financially than the UK. And Germany’s industrial sector comprises 1/3 of all new jobs with the service industry completing it. Savings are very real.

    So yes, you can promote through this video that Euro land is the next great crash to happen. Nations on the European continent face challenges. The Swiss Banking system may face the reality of Iceland. Neither of which countries currency are Euro.

    Countries with Euros like Luxembourg and Belgium with Fortis demonstrate private financial institutions whose residence in small countries cannot exceed these countries GDP. But so far it does not look as if it will bring down the Euro any more than Iceland.

    So yes, for misinformation and entertainment predicting years to come the demise of Euro to be replaced by the US Dollar can give us hope. To remember the old days when 4 Euro equaled a Dollar like the DM would be great.

    Of course it means ignoring the obvious that to look at so many different countries willingly basing their currency on Euro prompts the question of half empty or half full debate. How can so many independent states have such a common fiscal strength or are they a collective accident looking to happen?

    If the argument is really about the EU as whole becoming a republic, well American history suggest a civil war might sort that out. Until then the opposite system of unified banking in the US does not seem to be the model to copy in Euro land either.

  2. Andrew Horowitz on October 12th, 2008 9:12 am

    Lisa:

    While you lay out excellnt points, I was simply saying that with all of problems in the region, it is going to be interesting to see how each of the countries that ARE currently using the EURO currency will be able to remain stable.

    In other words, one currency and one eco policy seems to be a problem these days, but one currency with many eco challenges with countries that are in different stages of fiscal upheaval may prove challenging….

    Frankly, I am primarily concerned about the stability of the currency and it will l be an interesting test of how well thought out the union is under stressful times.

    As you state: “Of course it means ignoring the obvious that to look at so many different countries willingly basing their currency on Euro prompts the question of half empty or half full debate. How can so many independent states have such a common fiscal strength or are they a collective accident looking to happen?”

Got something to say?