Economist Kenneth Rogoff is one of the great economic minds out there. His book, “This Time is Different” is probably the best read about the 2008 financial crisis and the structural issues surrounding it.
A quick look at what happened in overnight trading – the euro zone is showing strength with the S&P Europe 350 trading up 1.11% at the mid-day with leadership in the financial sector.
As we highlighted Monday, the euro is locked in a multi-day price consolidation between $1.3000 and $1.3300. After the Fed Chairman’s speech yesterday the euro rocketed to the upper end of the range and halted in its tracks. As it trades sideways along the upper range today, traders need to get ready.
It was only a couple of months ago that Greece’s then-prime-minister George Papandreou admitted Greece has been a badly managed country. This is stating the obvious and has been mirrored in the masses since the beginning of Greece’s sovereign debt crisis.
One of the few pleasant developments of the euro crisis is that German consumers continue to spend on domestic goods and services.
It would seem that the strongest member of a declining organization would want to leave the losing proposition. But, as French Premier Charles DeGaulle once exclaimed, “Nations do not have friends, they have interests.” For that reason, Germany will do all it can to ensure that the European Economic Commission and the euro itself endure.
On a scouting trip to Japan to look for bargains there, Warren Buffett made his opinion known on the current debt crisis unfolding in Europe. He said that the debt crisis in Europe had revealed a “major flaw” in the eurozone, and that words alone will not solve the problem.
Global investors expect the debt crisis in Europe to end with central bank buying of bonds, though a large minority believe the crisis could result in the breakup of the eurozone.
Last week saw contagion fears rise sharply in the Eurozone as Italy emerged at center stage of the European debt drama.