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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: Jack of All Trades who wrote (3778)5/10/2010 10:27:45 AM
From: Real Man  Read Replies (1) | Respond to of 220964
 
Yep, but I really question the fundamental reasons behind
it. Ben printed, ECB didn't (they did some, but not nearly as
much). So, default in Europe is more of a possibility in
Europe.

However, what does printing do to a currency? Is devaluation
a form of default on the government bonds? I do think
it is. It was somewhat concealed in the US, since the bulk of
the Quantitative Easing was directed at the mortgage market,
and the Fed emphasized many times that they will sterilize
the printing in due time (which is questionable, at least
to me).

The answer is, computer models took over these markets and are
trading them sans price discovery, so far.