Tuesday, 27 September 2011
Hasta la Vista
In the meantime I can see lots of developments of the rest of the week:
- Equity markets rally as they are bored of falling
- Then they fall again when they realise that Germany can't commit to the new EFSF without a referendum
- Then they rise again as the EU gives Greece its next bailout
By then it will be Friday and I will be back. (I will keep some Spanish Euro's as a memento.)
I have some questions on Gold though that Nick Drew may answer:
- How low will Gold go before this sell-off ends?
- Is this a good sign, gold only sold off like this in 2008 immediately post-Lehman - i.e. at the point of maximum pessimism - is this a contrary indicator?
Finally, a thought on the proposed Euro bail out. If Germany won't support the Euro then it should leave. The devaluation will be a better medicine than all the austerity for all the other member countries.