Euro Taking A Pounding Again

Lots of nervousness

Nervous trading in Tokyo sent the euro into an early nosedive on Monday morning, as fears of further debt crisis contagion and stalling growth crept across dealing rooms.

The euro, already under pressure in New York before the weekend, plunged to a four-year low of $1.2306 against the greenback, sending stock markets in Japan and Korea sharply lower. Tokyo stocks were especially hammered, as the yen’s supposed safe-haven status pushed the Japanese currency higher, making life tougher for the country’s big exporters.

Angela Merkel was asked about how positive she was on the situation for Europe and all she could mutter was “Fahrvergnügen”

There is now a pervasive awareness in Germany that the post-war consensus of subsuming its national identity — and national self-interest — in the “common European house” no longer gets a popular rubber stamp.

“We give millions to countries where they have big annual pay rises, perks for civil servants and soaring pensions. I’ll have to work to 67 for a pension that might not be enough,” complained Ulrike Daunheim, a 38-year-old shop assistant and Bild reader.

“Greece has no industry worthy of the name, makes no products with prospects on a global scale and carries out no research to discover any,” was the verdict of the left-liberal Der Spiegel news magazine.

The Germans are getting pissed off at the rest of Europe…what could possibly go wrong?

But not to fret, Fritz! The Greeks has decided to take a long, hard, honest look at the true cause of this crisis in their country, and for once with boldness and refreshing candor to root out the problem

May 16 (Bloomberg) — Greece is considering taking legal action against U.S. investment banks that might have contributed to the country’s debt crisis, Prime Minister George Papandreou said.

…In the CNN interview, Papandreou said many in the international community have engaged in “Greek bashing” and find it easy “to scapegoat Greece.” He said Greeks “are a hard-working people. We are a proud people.”

“We have made our mistakes,” Papandreou said. “We are living up to this responsibility. But at the same time, give us a chance. We’ll show you,” cautioning that the world might have to wait a little while for this rousing display of Greek Responsibility as “we have a few general strikes scheduled for the coming weeks and then, well, what with the World Cup and all” things might be delayed “somewhat.”

No worries.

3 Responses to “Euro Taking A Pounding Again”

  1. WunderKraut says:

    The Germans are getting pissed off at the rest of Europe…what could possibly go wrong?


    Reminds me of a great line from the Simpsons:

    Carl: Yeah, you know, those Germans aren’t so bad.

    Lenny: Sure they made mistakes in the past, but hey, that’s why pencils have erasers!

  2. Mr. Bingley says:

    As Tom Lehrer sang-

    “we taught them a lesson in 1918
    and they’ve hardly bothered us since then…”

  3. Yojimbo says:

    And then after the World Cup August will be approaching and we certainly can’t do anything in August! Is Greece even in the freaking World Cup?

    Just be thankfull that there is no “asian contagion” right now. You would be hearing “Zoom! Zoom!” instead of Fahrvergnugen. Always looking at the bright side. Thank me now or pay me later.

    How are those swap agreements with the ECB working out? The Euro is down over 400 points since that was announced.

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