joint us/europe intervention rather than with rate hikes given the weakness appearing in european economy. ""
You seem to be well introduced to this problem, but one can't talk like a book! he problem is much more complex!
Maybe we should first compose the questions???
Will US equity markets suffer because with such unfavorable rates? Yes!
Would there be flight of large capitals to USD and ingected into US Equity market? I quess not! The rates make it unfavorable to convert Euro to dollar and invested it in NAZ of NYSE.
US economy, if we have to believe the Feds. is cooling off and the returns will not be as great! The USD-EURO exchange rates will not be helping the earnings of US exporters to Europe, and will further erode the profits! This is one bloody vicious circle. Will there be an intervention by the US of IMF? We have to wait for the G7. One last thing, the intervention in itself will not be an easy matter! This no Japan or Mexico! We have screwed ourselves up on this continent, when we agreed to go inot single currency. We even can't agree on the size cucumbers that we have to grow,(our law makers discussed that for months!) We lack unity, and single identity, we lack leadership. We even don't beleive in EURO. I will not be suprised
if some of the EC nations pull out of the Euro. Under the prevailing cicumstance, either US will assume leadership, or
we will drag you with us, like it or not!I doubt if your present adminstartion has the credeblity of capacity to lend that leadership! So, we have to look byond the elections in Nov. |
