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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (28772)	5/20/2010 9:00:55 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 71403

There are scathing articles out in FT germany which quickly denounce the latest german move as populistic simply. Politicians when being made aware of homemade problems (and Greece is a typical homemade credit problem) start fingerpointing and want others to pay for their own faults. Call it the german export bubble all financed by no down, no tax, no doc loans to Greek, Portuguese and Spain entrepreneurs. Wonder why every other day european real estate funds close down or stop redemptions? All that crap has been put into OPM funds. >>>>>>>>>> The residential real estate bubble in Spain saw real estate prices rise 201% from 1995 to 2007[7]. € 651,168,000,000 is the current mortgage debt (second quarter 2005) of Spanish families (this debt continues to grow at 25% per year - 2001 through 2005, with 97% of mortgages at variable rate interest). In 2004 509,293 new properties were built in Spain and in 2005 the number of new properties built were 528,754[8]. 2004 estimations of demand: 300,000 for Spanish people, 100,000 for foreign investors, 100,000 for foreign people living in Spain and 300,000 for stock[citation needed]; in a country with 16.5 million families, 22-24 million houses and 3-4 million empty houses. From all the houses built over the 2001-2007 period, "no less than 28%" are vacant as of late 2008[9]

To: maceng2 who wrote (28772)	5/20/2010 9:35:34 AM
From: ggersh	2 Recommendations Read Replies (3) \| Respond to of 71403

"The euro stabilisation package is due to be debated today by a largely hostile Bundestag, and like the new European directive on hedge funds, this is a scrap to throw to the angry mob; this is not about economics, but politics." I look at it as economical rather than political. Naked CDS selling is just wrong and WS is holding the world hostage. -ng- Then again it's not as if Govt's worldwide haven't messed up big time. There again Germans don't want it to happen again and do HAVE the moral compass on this.

To: maceng2 who wrote (28772)	5/24/2010 9:17:50 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 71403

Spain - the melting pot is slowly cooking up! And it is slow because it is so huge! OREX-Euro down broadly as Spanish news adds to jitters * Euro slips, pauses from short-covering rally * Spain's CajaSur takeover keeps investors euro-negative * CFTC: IMM speculators trimmed record short euro positions (Adds comment, updates prices; changes dateline, previous LONDON and byline) By Gertrude Chavez-Dreyfuss NEW YORK, May 24 (Reuters) - The euro fell broadly on Monday, pulling back from gains last week, after the Spanish central bank's takeover of a savings bank added to jitters about debt problems in some of the weak euro zone countries. The Bank of Spain said on Saturday it had taken over the running of CajaSur following the failure of its planned merger with another regional lender. [ID:nLDE64L007] The move highlighted the weakness of the banking sectors of some euro zone members, already suffering from fiscal problems and struggling to bring down their budget deficits. The news also wiped out last week's short-covering rally in the euro spurred by fears European monetary officials may intervene to prop up the beleaguered single currency. "We did have news about the Spanish bailout of a bank. But that's only part of the story," said Matthew Strauss, senior currency strategist, at RBC Capital Markets in Toronto. "What we saw last week was a short-squeeze rally on the euro and that was short-lived. Overall, the underlying theme is still one of risk aversion." In early New York trading, the euro <EUR=> was down 1.6 percent on the day at $1.2369. It fell 1.3 percent versus the yen <EURJPY=R>. Traders said euro losses accelerated after stop-loss orders were triggered under $1.2480. European banks and Asian central banks were also seen selling the euro in quiet trade, with many European markets on holiday. Last week, the euro fell to a four-year low of $1.2143. Support is seen around $1.2135, the 50 percent retracement from the euro's all-time low to its all-time high. Further adding to the stress was news on Monday that Spain's largest workers union was heading for a general strike in protest at the government's austerity measures, although it preferred not to call one. [ID:nMDT009049]. MORE EURO LOSSES The euro has retreated from $1.2670 hit on Friday. It rallied last week as investors exited extreme short positions in the single currency, in part due to fears of intervention to prop up the euro after its dramatic decline in past weeks. For an analysis of intervention prospects, see [ID:nLDE64K12A] "The euro's short squeeze isn't sustainable," said Chris Turner, head of currency strategy at ING. "The market is waiting for the next negative news from the euro zone to sell the euro." Commodities Futures Trading Commission data shows IMM speculators had by early last week cut back slightly on record bets the single European currency will weaken. [IMM/FRX]