Demise of the Euro?

General Electric may have done what the employment numbers the week before were incapable of doing. Shake Wall St. away from the continued belief that things are still closer to 1998 rather than the 1930s or 1970s. We shall see. Technically we are at a key point but not surprisingly we are at a key point from a fundamental standpoint with tons of earnings. That is why I shake my head with people running around trying to make technical calls. Stick to fundamentals and the technicals will eventually follow to the fundamental story. Not vise versa. Use the technical points as guiding posts using them to take advantage when you got extreme readings and you were thinking of shorting x or going long y anyway. This week and next we will have a much better idea what the true fundamental story is. Also, Ambac reports a week from Thursday. MBIA not until early May. Should be interesting.

Interesting article on the Euro entitled "Demise of the Euro" (thanks goes to Doug). I have not heard this perspective at all which makes it especially intriguing to me especially since it makes logical sense. I have no opinion on the Euro. Maybe it goes up or maybe it goes down. Asia currerencies is a total different story as within five years I think across the board there will be continued major appreciation against the U.S. dollar.

http://www.forbes.com/opinions/forbes/2008/0421/034.html

Tensions between inflation-obsessed Germany and growth-hungry Latin countries will spell its end.

It is only a matter of time, probably less than three years, until the euro experiment meets its end. The financial crisis in the U.S. is hastening the process, as investors flee the dollar, pushing the euro to a price of $1.59. But it will not stay high for long. Countries like Spain and Italy will withdraw and return to their old currencies. Once that happens, get ready for the return of the deutsche mark and the French franc.

The whole article has some very interesting points I have not read, thought of, or heard anywhere else. Very good read.