How Europe Sees Itself


After Trichet’s impassioned press conference last week, the ECB lens on reality is instantly my favorite.

how europe sees itself

Is this accurate?

As as a trader, the Market lens is spot on. None of us know why the euro is rallying. Yes, it benefits from USD selling. Yes, it benefits in risk-on environments. Yes, it has a higher interest rate than most of the G7 at 1.50%. But given the headlines, just this week alone, on the sovereign debt crisis, it is unbelievable that the single currency doesn’t just blow up like a bad science experiment. But trader take heart in this. While “Hear no evil, see no evil, say not evil” is not a very good monetary policy, it certainly works for the markets. We always remember that the markets can remain irrational longer than we can remain solvent.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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