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Strategies & Market Trends : Galapagos Islands

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To: Lazarus_Long who wrote (49874)1/8/2004 5:09:23 PM
From: X Y Zebra  Read Replies (1) of 57110
 
The strong euro gives the ECB more breathing space, as it saps inflation by lowering import prices. Most analysts in a Reuters poll had said the ECB would stay put this month and that it would wait until the second half of 2004 to raise rates.

Other than the above, I cannot understand why the Europeans do not lower interest rates.

With the prospect of South East Asia taking control of manufacturing I do not see Europe positioning itself under an environment that will compete with that fact.

I do not understand their position really... In my eyes the Euro is stronger because of a temporary demand for it, rather than a better economic prospect in Europe (long term). I also understand that currencies are driven (partially) by traders and trends in currencies tend to last longer periods of time... but fundamentally... Why would I want to invest in Europe, instead of Aisa, the US and even South America...

Europe seems so paternalistic and employees seem to have heaven handed to them without much trouble...

Maybe I am not seeing something...
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