Larger Euro Zone Bailout Fund

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Larger Euro Zone Bailout Fund
www.ForexConspiracyReport.com

Now that the Greek bailout is in place EU officials are considering a larger Euro Zone bailout fund to deal with the likes of Italy and Spain.
Published figures of €500 Billion indicate a fund four times the size of the recent Greek bailout cash infusion.
According to press reports a final decision on creating a larger Euro Zone bailout fund have been put off for a month.
Considering off again and on again nature of negotiations with Greece this sort of delay is no surprise.
Forex traders have profited from long or short positions on the Euro for the last couple of years as Euro Zone news releases have indicated alternating good and bad news about the debt dilemma melodrama.

The current bailout fund, the European Financial Stability Facility, has been used to provide financial relief for Portugal, Ireland, and Greece. However, the fund is likely too small to help the larger economies of Spain and Italy.
In addition to anteing up more money Euro Zone officials will likely change the temporary nature of the current bailout fund and name the new permanent fund the European Stability Mechanism.
The issue of a larger Euro Zone bailout fund is a touchy one in countries such as Germany. Germany has the largest economy in the European Union and has anted up the most bailout money.
German Chancellor Angela Merkel has led the way, along with the French, in gaining support for a rescue of Greece and pushing for changes that will guarantee the continued solidarity of the European Union. However, Merkel has to deal with increasing dissatisfaction at home.
As the Greek debt melodrama has finally ended German voters are questioning just why they should be the ones to pay for what they see as profligate spending by one of their southern Euro Zone brothers.

The thought of having to now support an even larger fund aimed at rescuing Italy, Spain, and others has voters from Dusseldorf to Berlin asking, “why me.”
The relatively small size of the current fund, however, provides investors with little confidence. As Italy, Spain, France, and others ask investors to buy bonds to cover their national debts the investors would feel more confident and would be willing to risk more money if they believed that the Euro Zone as a whole was ready to back up these economies in case of a debt default.
Lacking that assurance, investors have demanded higher interest rates for the purchase of bonds from Italy and Spain, thus increasing the burden on these nations’ economies.

Although a larger Euro Zone bailout fund will likely alleviate the fears of some investors, Forex traders see a recession in the works in Europe.
The need come up with more and more money coupled with nation by nation austerity measures is expected to drag the Euro Zone economy back into negative numbers for the next year or so.

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Larger Euro Zone Bailout Fund

  1. 1. Larger Euro Zone Bailout Fund www.ForexConspiracyReport.com
  2. 2. To see a complete version of this presentation and to obtain our free EBook follow this link:http://portal.sliderocket.com/BLOUC/Larger-Euro- Zone-Bailout-FundRead the Forex Conspiracy Report for insights into trading foreign currencies. Get your copy athttp://portal.sliderocket.com/BLOUC/Larger-Euro- Zone-Bailout-Fund www.ForexConspiracyReport.com
  3. 3. Now that the Greek bailout is inplace EU officials are consideringa larger Euro Zone bailout fund to deal with the likes of Italy and Spain. www.ForexConspiracyReport.com
  4. 4. Published figures of €500 Billionindicate a fund four times the size of the recent Greek bailout cash infusion. www.ForexConspiracyReport.com
  5. 5. According to press reports a finaldecision on creating a larger EuroZone bailout fund have been put off for a month. www.ForexConspiracyReport.com
  6. 6. Considering off again and onagain nature of negotiations with Greece this sort of delay is no surprise. www.ForexConspiracyReport.com
  7. 7. Forex traders have profited from long or short positions on the Euro for thelast couple of years as Euro Zone news releases have indicated alternating good and bad news about the debt dilemma melodrama. www.ForexConspiracyReport.com
  8. 8. The current bailout fund, the EuropeanFinancial Stability Facility, has been used toprovide financial relief for Portugal, Ireland,and Greece. However, the fund is likely toosmall to help the larger economies of Spain and Italy. www.ForexConspiracyReport.com
  9. 9. In addition to anteing up more money Euro Zone officials will likely change thetemporary nature of the current bailout fund and name the new permanent fund the European Stability Mechanism. www.ForexConspiracyReport.com
  10. 10. The issue of a larger Euro Zone bailoutfund is a touchy one in countries suchas Germany. Germany has the largest economy in the European Union andhas anted up the most bailout money. www.ForexConspiracyReport.com
  11. 11. German Chancellor Angela Merkel has led theway, along with the French, in gaining support for arescue of Greece and pushing for changes that willguarantee the continued solidarity of the EuropeanUnion. However, Merkel has to deal with increasing dissatisfaction at home. www.ForexConspiracyReport.com
  12. 12. As the Greek debt melodrama has finallyended German voters are questioning just why they should be the ones to pay for what they see as profligate spending by one of their southern Euro Zone brothers. www.ForexConspiracyReport.com
  13. 13. The thought of having to now supportan even larger fund aimed at rescuingItaly, Spain, and others has voters from Dusseldorf to Berlin asking, “why me.” www.ForexConspiracyReport.com
  14. 14. The relatively small size of the current fund,however, provides investors with little confidence.As Italy, Spain, France, and others ask investors to buy bonds to cover their national debts theinvestors would feel more confident and would bewilling to risk more money if they believed that theEuro Zone as a whole was ready to back up these economies in case of a debt default. www.ForexConspiracyReport.com
  15. 15. Lacking that assurance, investors have demanded higher interest rates for the purchase of bonds from Italy and Spain,thus increasing the burden on these nations’ economies. www.ForexConspiracyReport.com
  16. 16. Although a larger Euro Zone bailout fund will likely alleviate the fears of some investors,Forex traders see a recession in the works in Europe. www.ForexConspiracyReport.com
  17. 17. The need come up with more and more money coupled with nation by nationausterity measures is expected to drag the Euro Zone economy back into negative numbers for the next year or so. www.ForexConspiracyReport.com
  18. 18. Unfortunately, this is exactly when the Euro Zone economy needs to be humming along in order torepay all of that debt. Forex traders are aware that a Euro Zone recession, larger Euro Zone bailoutfund or no, will likely drag down production is Asia and affect North America. www.ForexConspiracyReport.com
  19. 19. Then the question for Forex traders will bejust which economy will be least injured by the continuing Euro Zone debt crisis and which currency will prosper compared to the rest. www.ForexConspiracyReport.com
  20. 20. For more insights and useful informationregarding the Forex markets and foreign currency trading, visit www.ForexConspiracyReport.com.

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