Markets plunge as Merkel delivers euro warning and bans short-selling - the outcome?

[AtW]

...holding stocks or the euro is not a safe thing to do.

Bollox - it is perfectly safe to keep stocks or euros, what's not safe is to speculate on short selling those - and it should have never been safe in the first place.

One should remember simple thing - Germany exports a lot of stuff so weak euro will make big difference to their economy, either way they win.

[Moscow Mule]

Bollox - it is perfectly safe to keep stocks or euros, what's not safe is to speculate on NAKED short selling those - and it should have never been safe in the first place.

ftfy

[SantaClaus]

Bollox - it is perfectly safe to keep stocks or euros, what's not safe is to speculate on short selling those - and it should have never been safe in the first place.

One should remember simple thing - Germany exports a lot of stuff so weak euro will make big difference to their economy, either way they win.

Merkel Isolated After Short-Selling Ban Fails to Win Backers

[Sysman]

Having spent only a month here in Germany, it renews my faith in earning euros opposed to pounds, cause they soon could easily be converted to deutsch marcs

Gosh the Germans are actually managing the situation making bold moves writing their future and this guy is so right about the copycat britain, where did we think up the car scrap-page scheme?

Markets plunge as Merkel delivers euro warning and bans short-selling - Times Online

as far back as 2007 I started predicting that Germany and Austria would eventually leave the Euro and together with Switzerland form their own currency. Whether it will be called the Deutsche Mark (a name that brings nostalgia and pride to the heart of nearly every German) or otherwise I don’t know.

<Screams of laughter>

There is NO CHANCE WHATSOEVER of the Swiss or Austrians joining a currency with "Deutsch" in its name.

And that's post #3000 from me

[Doggy Styles]

Brown did not make people get ridiculous mortgages - reasonable people refused to play this tulipy game, sadly most wanted to "own" house more than have sensible finance.

People are people, AtW. This is not some intellectual utopia - there isn't one.

HMG allowed the environment to develop which encouraged all this borrowing. They could not have managed it much worse.

[scooterscot]

I'm bringing home an extra £1 every hour thanks to the last 24 hours, why is the euro gaining against the pound now?

[SantaClaus]

I'm bringing home an extra £1 every hour thanks to the last 24 hours, why is the euro gaining against the pound now?

One story is that traders are to scared to short euro whilst there is threat of intervention (the Swiss National Bank intervened with their currency yesterday), so they are shorting the aussie instead.

[TimberWolf]

Seems like no currency is safe. Are they each taking dibs to devalue? What about the Chinese yuan, how's that been doings? This graph seems to show a remarkable constancy wrt the dollar. Is that right

[DimPrawn]

Seems like no currency is safe. Are they each taking dibs to devalue? What about the Chinese yuan, how's that been doings? This graph seems to show a remarkable constancy wrt the dollar. Is that right

The Yuan is pegged to the dollar. For now.

[suityou01]

The Yuan is pegged to the dollar. For now.

Contentious issue that little puppy. The Yuan is pegged, and this is because America is China's biggest importer. Clothing, equipment in America is all imported from China. However China is seriously peed off with America, as they have lent them a lot of money in the past, and they see that all America do with it is to spend it on pointless wars they do not agree with.

The Iraq war for instance was caused by the fact that Sadam stopped trading oil in $. That was essentially it.

If the dollar peg was removed, China would have to remove it's dependence on the dollar as a reserve currency (it has been dumping the dollar, carefully so as not to trigger a collapse, for many months), and build a big enough export market within the other emerging economies such as India.