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Why the euro's continued decline is bad for all markets: its tight correlation to other markets,...

  • Tuesday, December 13, 2011, 1:54 PM ET
    Why the euro's continued decline is bad for all markets: its tight correlation to other markets, frequently moving in tandem with risk assets. "Europe is going into recession and the ripple effect on global growth next year is the story," Miller Tabak's Peter Boockvar says. "The only way we avoid it is if we get the Fed announcing quantitative easing and the ECB printing money in the next couple of weeks."
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This news story has 6 comments:

  •  
    Terrible way of going at it, don´t quit your day job Peter, you only kick the can down the road for a few more months. Take the pain.
    13 Dec 2011, 01:56 PM Reply Like
  •  
    Same response for all problems: print more money. Zombies!
    13 Dec 2011, 02:02 PM Reply Like
  •  
    To listen to people like Boochvar and his ilk (like Krugman) talk, you would think printing money can fix *anything*...heck, maybe even cure cancer.
    13 Dec 2011, 02:02 PM Reply Like
  •  
    The banking oligarchs are foaming at the mouth.....
    13 Dec 2011, 02:08 PM Reply Like
  •  
    On the contrary, the U.S. needs to step up its consumption of imports to recycle the vast amount of dollars, currently flooding in, back out to other countries. If we don't, money piles up here, unutilized, as we're seeing, and monetray velocity drops.

    The euro getting cheaper is doubly beneficial because it will improve Europe's exports, helping their economy, and it will make the dollar stronger, increasing our own consumption, which may finally cause rates to creep up, which, in turn, will unleash a huge amount of borrowing demand that is now dormant, in the expectation of constantly lower rates.

    This will be all-around positive.
    13 Dec 2011, 02:09 PM Reply Like
  •  
    I agree with Richard. At what point are we printing, borrowing and spending beyond a point of no return. It will never get easier...so why keep doing the same thing over and over again expecting different results? How is more borrowing going to show the PIIGS fiscal responsibility?
    13 Dec 2011, 02:23 PM Reply Like
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