Monday, June 6, 2011

Question (FXE)

How, exactly, is a PIIGS bailout bullish for the Euro?

Why does the Euro rally on news that, "don't worry, European banks are insolvent but we will print more Euros to cover it up"?

2 comments:

getyourselfconnected said...

Because it is an extension of the ponzi/pretend regime. As long as none of this money ever has to be real, the games go on.

CP said...

Right, but the response to threatened or actual Euro "printing" is the opposite of USD. Inconsistent...