"Believe me, it will be enough," says Mario Draghi, promising to do "whatever it takes to...


"Believe me, it will be enough," says Mario Draghi, promising to do "whatever it takes to preserve the euro." Yes, but at what level vs. the greenback?

From other sites
Comments (17)
  • bbro
    , contributor
    Comments (11217) | Send Message
     
    Beware of conventional wisdom....
    26 Jul 2012, 07:09 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    Go ahead, spin yur wheels, save the euro, but I have a question for you. WHY? Woodn't it be cheeper to take a likin' and start fresh?

     

    Nevermind, I'm just an old fool from the sea.

     

    Capt. Brian
    The Lost Navigator
    26 Jul 2012, 07:48 AM Reply Like
  • Tack
    , contributor
    Comments (16274) | Send Message
     
    "but at what level vs the greenback?"

     

    That question makes it sound as though the euro's depreciation versus the greenback presents a problem, when, in fact, it's been the euro's exaggerated valuation for an extended period of time that's been one of the principal problems hurting European economies. The excessive value embedded in a too-high euro has suppressed exports, damaging Europe's growth, and encouraged conspicuous consumption, instead.

     

    Reduction is the relative valuation of the euro will be salutary all the way around, as will become evident.
    26 Jul 2012, 08:42 AM Reply Like
  • kmi
    , contributor
    Comments (4581) | Send Message
     
    Thanks Tack, good comment.

     

    Not only that, but lower Euro just makes the productive parts of the EU ever more competitive, so I fail to see where the problem with EUR/DOL is.
    26 Jul 2012, 09:06 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (562) | Send Message
     
    Wow. Lighten up Francis. Do I have to preface ever tongue-in-cheek comment with a warning?

     

    The 'need' for a lower euro has been well-covered in MCs. The point of this particular one is that arguments over the euro's survival are trivial ones (IMO). Will the currency move higher, lower, sideways - that's what I want to know.

     

    "What do I buy, what do I sell, how do I win," once said a successful hedge fund manager after hearing some high-level presentation about a macro theme.

     

    I assume you are disgusted with Draghi's comments as they've sent the euro soaring.
    26 Jul 2012, 09:20 AM Reply Like
  • Tack
    , contributor
    Comments (16274) | Send Message
     
    SA:

     

    That is the irony. When confidence waxes on the euro's survival, it rises, when it's precisely the opposite direction that it must move to ensure its survival and the rejuvenation of European economies.
    26 Jul 2012, 09:24 AM Reply Like
  • InvestingInMobile
    , contributor
    Comments (53) | Send Message
     
    It is possible that the comments were intended to shore up some of the equity markets as a decline in the Euro vs the Dollar would lead to a flight of equity from European capital markets to the US. Other than that, a lower value Euro would act as a stimulus to the manufacturing and service sectors in the EU.
    26 Jul 2012, 09:46 AM Reply Like
  • dieuwer
    , contributor
    Comments (2924) | Send Message
     
    More hollow words from Draghi... First see, then believe!
    26 Jul 2012, 08:52 AM Reply Like
  • WMARKW
    , contributor
    Comments (10787) | Send Message
     
    Right on dieuwer.... Let's see.....we want to actually BELIEVE the words that pass from the lips of a Central Banker? Ha, ha, ha, ha.....
    26 Jul 2012, 11:07 AM Reply Like
  • NIRP
    , contributor
    Comments (420) | Send Message
     
    Every time I read something from Europe I laugh. Reminds me of the car trip on a family vacation........are we there yet. Stop pouring good money into a bad investment.
    26 Jul 2012, 10:20 AM Reply Like
  • Tack
    , contributor
    Comments (16274) | Send Message
     
    User:

     

    Yes, but like those family-vacation car trips, we do actually get there sometime.
    26 Jul 2012, 10:35 AM Reply Like
  • WMARKW
    , contributor
    Comments (10787) | Send Message
     
    Then we find out that where we wanted to go was not actually what we thought it was going to be all the time we were anxiously waiting to get there.
    26 Jul 2012, 11:09 AM Reply Like
  • NIRP
    , contributor
    Comments (420) | Send Message
     
    Tack,
    Yes we do. But will it be what we pictured it to be. The time value of money is relative to the time and the value of that money.
    In 2008 and I took a hit for 10k on a house. I made it up on the next one. if I had stayed in the investment it would have produced slow painful returns for the next 7-10 years and the opportunity cost are huge. Tear the band-aid off and get it over with and move on. Germany should have cut there losses....period. Prolonged pain....stupid. In the end all will survive with or without a common currency. Just like it is now, some better than others.
    26 Jul 2012, 11:39 AM Reply Like
  • redwoodsman
    , contributor
    Comments (110) | Send Message
     
    The Eurozone should be increasing trade with the big markets like China,Brazil,India,USA and Canada even. Germany and France could be sending marketing experts to these countries and increasing their exports accordingly. It's a global situation and all the countries should support each other. Even Russia could benefit along with other regions that are doing well despite the problems. Increased trade would employ many hundreds or thousands of people. A few cents on the Euro is irrelevant in the global picture.
    26 Jul 2012, 11:00 AM Reply Like
  • Hendershott
    , contributor
    Comments (1752) | Send Message
     
    Time for Toby Keith....A little less talk and a lot more action!
    26 Jul 2012, 03:17 PM Reply Like
  • rubicon59
    , contributor
    Comments (1502) | Send Message
     
    I heard he is selling the Brooklyn Bridge at a discount and buyers are lining up.
    26 Jul 2012, 11:00 PM Reply Like
  • redwoodsman
    , contributor
    Comments (110) | Send Message
     
    Nothing happens till something is sold, surely there is something that these countries can manufacture and sell. 50% unemployed is intolerable,the debt is ridiculous and government is incompetent and useless and yet you joke about it. Severe consequences await the rest of the world unless changes are made and finances are adjusted along with economic reform,so laugh it up while you can,I won't allow myself to say what I really feel just that I hope your attitude changes.It only takes a few good people to start to make a change,maybe you're one of them....
    10 Oct 2012, 05:54 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs