Thursday, May 6, 2010

Sailboat Diagram T-shirt

Now the ECB is raising rates

After the severe riots in Athens following the catastrophic political management of the Greek Grisi , references, unfortunately, with Argentina becoming increasingly evident.

Speculation rife pressing CDS spreads by creating a further expansion of already very high, with the help of credit rating agencies that issue a downgrade on a day PIGS (perhaps as a few days is just minutes from the end of the market) and the other threatens to change the outlook.

Since the politicians of the EU are proving unable to successfully manage the situation, the central bank must take care of the problem finally uncomfortable making a decision, but at this point inevitable raise rates interest without prior notice, to break the eggs in the basket to speculation and give a little 'tone to a € dying.

Among other things, inflation pressures are beginning to be hours and the increase of prices continues to inexorably erode the already declining purchasing power of citizens Europe.
Ioltre the market is already starting to price increases in short-term rates, as evidenced by the increase in Euribor.

After a probable first moment of bewilderment, with relative and likely temporary decline in stock indices and also the bond market, speculators they would realize that continuing to shoot on Europe may now be too risky.
Today there is great expectation for the press conference, Trichet, Jean Claude courage!

0 comments:

Post a Comment