Aus dollar vs Euro

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If the market crahses again, then its the perfect oportunity to buy.

I was considering selling mys tocks a week ago, but I think I will ride it down. The companies I am with aren't going anywhere.
 
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Ye I read a report my broker sent me, shouldn't be too worried as Greece aren't that big in the overall picture.

I will hold my stocks also, just painful too see the falling knife.
 

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BobbyMorri said:
Greece aren't, but the Europaen Union is. This process could spread. Portugal, Spain and Italy has had their credit rating downgraded already last night.
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Greece makes up 2.5% and portugal 1.9% of european GDP I think it was?

Not so sure on Spain or Italy.
 
Italy and Spain are big European countries. 7th and 10th in the world roughly. But, the real concern is at Portugal. It is on a knife-edge ATM, it could very easily be the next to fall.

Markets can see a correlation between Greece and other European countries quite easily, and unlike an isolated country, where you can decrease the currency to help reduce costs, the Eurozone cant due to the fact its currency is in multiple country's. This will spread if there is even a hint of failure. Markets love to panic, and when that happens, it just gets worst and worst.

If they dont guarantee Greece's debt, Financial institutions(mostly EU) lose the money they invested into Greece, and that never ends well. That is why Germany are helping out, to try and restore confidence in European bonds. If Spain fails, then who knows how much damage the Euro-Zone will suffer. 2% falls in the stock market will be minor.:(

But that shouldnt happen. It should hopefully stop at Greece, maybe a package at Portugal as well.
 
BobbyMorri said:
But that shouldnt happen. It should hopefully stop at Greece, maybe a package at Portugal as well.
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People say this, but the problem to me seems systemic and the 'solutions' are only aimed at the symptoms of the spiraling debt pit that is the global economy.

I don;t have a hell of a lot of wealth, but I will be honest and tell you I don't know where to put it ATM. I think the stock market is goign to enter a prolonged period of recession without a crash, but then again I don;t have a lot of faith in hard currency nowadays either. Its all fake.
 
BobbyMorri said:
As long as there is a type of security on the debt(Germany helping out), it should stop.

National debt is always a concern. But if there is going to be debt, someone has to invest and give them money. As long as they are happy, the world is happy.
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But therein lies the problem.

Germany isn't exactly a creditor nation. It isn't even close. They don't have the money to invest, so they are goign to have to borrow it. They are essentially borrowing money to pay a credit card bill. And thats usually fatal without a solid, stringent plan.

Such a plan doesn't exist anywhere in the western world. Its all about coveing the cracks caused by debt with money sourced from even more debt.

The world might end up happyw ith Greece in 2010, but what about 2012?
 
Yes, you are right, Germany is basically paying a credit card bill with another loan at a lower rate. But they simply have to, Greece defaulting is the worst case scenario which the EU cant afford to have.

If the market didnt think Germany could pay back the money, they wouldnt be borrowing this money at such low rates. And by doing this, they stabilise the markets so they dont have to do it again(hopefully). I say they are looking into the future also, by giving Greece strict guidelines to restrict spending. If they didn't spend during the rescission, then the rescission would have been much much worse.
 

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never wait

It's like all the pundits continually harping on about parity with the USD. Never gonna happen. AUD down to 0.84 against the greenback and dropping quickly.
 
after a few weeks of losses the aussie dollar is absulutely smashing it at the momment, mainly to do with greece still being in the poo and spain now joining them! making my holiday next month become extra exciting
 

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Aus dollar vs Euro

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