Posted on 05/24/2010 5:57:30 AM PDT by TigerLikesRooster
'Euro won't disintegrate': Goldman Sachs economist reassures markets
18.05.10
The euro today collapsed to a four-year low at one stage, but Goldman Sachs' top economist Jim O'Neill said it was “ridiculous” to suggest the single currency area was about to disintegrate.
Although the currency rallied against the dollar from this morning's $1.2235 low, it remains badly weakened, down nearly 7% this month alone, and 14% down so far this year.
But O'Neill, famed for spotting first the combined might of the new economic powerhouses of Brazil, Russia, India and China, which he dubbed the Bric economies, said the idea of the eurozone breaking up defied logic.
He even went so far as to suggest the euro's rout was nearing its end.
(Excerpt) Read more at thisislondon.co.uk ...
P!
Exactly
They must be clearing out their positions and going short.
I saw a brief reference to a quote from Jim Cramer last Friday morning that “...the Euro will have collapsed by 4:30 ET today”.
Had as much credibility as everything else Cramer says.
I do not see the Euro surviving as Germany is already mostly finished in planning to switch back to their Mark. It’s just a timing issue for them.
It dropped two 200 basis points over night. No sale. The runup last week was nothing but a dead cat bounce. The Euro was a dumb idea from the getgo.
That’s interesting. It is rapidly becoming a valid investment strategy to just do the opposite of whatever Cramer says to do. I suspect one could make a small fortune with it.
lol.
Okay, I’ll agree that its not as bad as Zimbabwe or maybe Venezuela but its stil very very bad.
Shouldn't passing on Goldman Sachs advice without a disclaimer, make a person/corporation a co-conspirator?
Especially when you consider the history of western Europe over, say, the past 500 years and their near total lack of ability to get along with each other......
Had as much credibility as everything else Cramer says.
While I don't disagree with you, in general, about Cramer.... I believe last week Cramer was mocking the people predicting the dissolution of the Euro. Basically, he was saying the Dow was pricing in a collapse, and... if it didn't happen ASAP, the market was going to snap back.
By now only idiots don't know that Goldman and their ilk are placing massive bets on credit default swaps that rise in value if the € tanks. By now only idiots don't know that Goldman places bets all the time that run counter to the advice they give out to the public and even private advice given to high rollers
That is, “it won’t disintegrate till Goldamn can get short” (spelling deliberate)
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