The EUR 100 billion + EUR 780 billion eurozone rescue package has just bought time but not enough to address the fundamental imbalances between euro-zone economies
3. http://marketsandbeyond.blogspot.com/
http://www.pcgwm.com/
Of course, we should not forget banks that are the happy holder of devalued/junk
sovereign debt. Last Friday, the interbank market in Europe was freezing again: we are not
out of the woods. European banks are in very bad shape, and I would not be
surprised that some are near bankruptcy.
Short the euro and European banks, even if they are crowed trades. The one danger is a
coordinated action by central banks in the FX markets to squeeze euro short sellers. This
would however have no lasting effect until the roots of the problem are properly
addressed. Watch emerging markets stocks that could be hammered during this crisis and
may provide fantastic buy opportunities; same for mining and energy stock.
On Markets & beyond blog, there is video on the Plaza accord worth watching: very much
resembling the current status of the euro (less so since December fall).
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