Ah the Eurozone...

What happened to talks regarding bailing out eastern european countries ? bailout pack vetoed.

Did not germany step foward earlier to cause the eur to retrace up ? Ah the jawboning ECB, crying wolf again. What happened in the story ? No one belived the boy even when it was genuine. -))

Retail companies in germany have debts that are 18 times their mkt cap. the ballpark is 4.2bn.

So what becomes of the savior ?  Rest my case. 

In most crisis, it always gets worst before it gets better. The race is on and am inclined to believe the mkt will start to see from the perspective that ...the ones that moved the quickest will stabilise the quickiest. Reserve asset managers have to re weigh their portfolios accordingly. While Gold may be the next bubble. 

Markets have very short memories and sometimes behaves in the most psychotic way. Eur and Gbp moving up aided by RBA's non move , seeking yield , is a risky proposition. But opportunities to the retail guy like me. 

For the Jpy weakness to persists relative to usd, the jpy crosses will somewhat mitigate the falls of eur and gbp. But in the reallocating of reserve assets, we may indeed see a straight usd play coming. 100.0 jpy in 2-3 months ?  Or even less hee hee. 

Into a new month...03/09

The dominant play in the mkt is the weakness of the Jpy. Much also has to do with the Usd preference against it but I reckon that may be secondary. So where should we be focusing on ? Looking to the crosses for any leads ...the jpy crosses. Eur.. there seems to be a apparent targeting of the 1.2500 level. With ECB rate decision this week .. its a good time as any. The asian session has not shown much except for light volumes. Play good defence in these mkt conditions and it'll be alright. The focus remains on the banking sector globally. Well the impact reaches the insurers, property mkts and retail/auto mkts. Rates are historically low and some expected to play catch up. The impact of low rates is deposit rates edge to zero and this post the challenge to financial instituitions to lend rather then hold deposits. The question therefore is not about rates anymore. Its about the quantity of money. QE should help to direct the money supply. Monies have to come into the economies.. in spending and consumption and building. Would like to see M3 growth slow and M1 growth pick up. But we may be a ways to go on this.