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http://www.marketwatch.com/story/euro-tumbles-to-new-14-month-low-vs-dollar-2010-05-06
We are starting to see the effects stemming from the recent bailout in Greece and as expected, the Euro has suffered. Do you think these negatives will be short term as they work through the bailout aftermath or is this just the beginning of more struggles to come?
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I suspect, as long as nothing goes terribly wrong with the Euro, these losses (in the NYSE) will be recouped relatively quickly (American investors can have very short memories). I do suspect that the Dollar will continue to appreciate and we may even seen a boom in American stock prices as Europeans flea the European exchanges.
ReplyDeleteThe dollar will definitely strengthen as the Euro becomes a bit more dicey as these events play out. America is a bit more stable as of now. I think the Euro could be headed down a tough road depending on how the situations in Portugal and Spain work out.
ReplyDeleteTo answer your question...more bailouts to come. However, America is doing better so I bet we are going to see very little concern from our government.
ReplyDeleteI absolutely agree on the dollar continuing to strengthen amongst uncertainty with the Euro. As Noah mentioned the situation in Portugal and Spain is still unresolved and as riots continue in Greece it is definitely an ugly headline for the EU. To also answer you question: more struggles to come! Somebody should tell Greece SCOTT'S IS BUYING!
ReplyDeleteI definitely agree with all the previous posts. Considering the rioting in Greece and some of the backlash across Europe, the Euro's current struggles are only beginning. It is difficult for a currency to remain stable amongst political, social, etc. turmoil.
ReplyDeleteUnfortunately lack of consumer confidence is often a self-fulfilling prophecy. If people lose confidence in the Spainish and Portugeuse economies these countries will falter. I hope this does not occur becuase bailing out Spain and Portugal would cripple the already distressed European economy.
ReplyDeleteI think that the PIIGS nations will be the next hit and recieve some sort of bailout, but hopefully it is not the case. Because if more and more countries need bailouts, the greater the chance of the Euro collapse and starting even more problems. I do not think that the US and Germany will let this happen.
ReplyDeleteWith the PIIGS possibly needing help in the future this could be more than just a short term phenomenon. Unfortunately for Europe that could mean it takes a while for them to see the Euro start moving back up again.
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