If you guarantee that the parents wont lose their jobs then they are much less likely to cut the pocketmoney to the kids. And so it is with the peripheral sovereigns and their domestic corporates. And these corprorate kids have good Saturday jobs that are earning them better money than their erstwhile parents who are reliant on taking in washing from the neighbours.
As can be seen below the Italian stock index has cleanly departed company form EUR/USD down the road to ruin and it is hard to see the high road of equities crossing the low road of the currency until we are really convinced that Mr. T and the Single A+ Team can get their act together and claw back their money from the system.
So a few hours into Monday after the euro package was announced the disociation of crisis response occurred and equities have carried on upwards ever since whilst the currency has been torched - left to take the burden of a QE. Sorry apparently this package should be labled "does not contain any QE", but a "QE like substitute ". It certainly contains Nuts.
As can be seen below the Italian stock index has cleanly departed company form EUR/USD down the road to ruin and it is hard to see the high road of equities crossing the low road of the currency until we are really convinced that Mr. T and the Single A+ Team can get their act together and claw back their money from the system.
4 comments
Click here for commentsHi and good luck!
ReplyI assume that you are one of the Macro Man's "successors" (for lack of a better term)?
Thanks for the post and please allow a small suggestion: it would be nice to have a name attached to the post and a way of addressing you.
Hi pupkinus,
ReplyThanks - it should say "Posted by cpmppi" at the bottom of the post now.
Cheers,
cp
Yes, I was going to accuse MM of being as bad as a retired boxer. Never really retired.
ReplyThanks for the post.
Goatmug
Same thing happened to USD with their QE program last year last year. Weak currency goes a long way in making your products attractive.
Reply