After a busy last month in which I traveled to beautiful places like Holland, Poland, Latvia, Estonia, and Spain, I had the pleasure to reunite with a very good friend and family and get that spark of energy always needed on any project. One Million Euros in less than 5 years welcome to my journey.
The sun is shining it is still summer! During my Holliday I experienced certain feelings and emotions of Victory! and I have to say that even when the media is full on topics related to the € crisis I have to be honest and say once again with full confidence that there is no crisis we have some countries from the Euro area with some amazing debt but that is not by any mean a crisis and the sole existence of the euro is not at risk as the media wants us to believe, finally some common sense came to light today when European Central Bank president Mario Draghi said the central bank would do whatever it takes to preserve the euro. European Central Bank president Mario Draghi said " the central bank would do wathever it takes to preserve the euro. He is right in a sense but it seems to me that the market is a whole casino. The market goes up because the comment of a person Wow! no reports, no rap sheets, no revenues, no profits, no, no, no. None of that. The comments of a mortal human suffice the confidence of Investors, at the end we are only humans Awesome.
"His
comments were a bit of a game changer because they put the power back in the
ECB to buy Spanish and Italian bonds," said Paul Zemsky, chief investment
officer for ING Investment Management. "That caused a great turnaround in
sentiment."
These comments signify that another long term refinancing operation will take place, the ECB cheap lending program aimed at preventing the Credit crunch is back on the table, this pseudo-crisis remains a significant headwind for global markets, as investors have been growing increasingly convinced that Spain will need a bailout.
These comments signify that another long term refinancing operation will take place, the ECB cheap lending program aimed at preventing the Credit crunch is back on the table, this pseudo-crisis remains a significant headwind for global markets, as investors have been growing increasingly convinced that Spain will need a bailout.
The country's borrowing costs remain unsustainably high, with Spain's
10-year yield hovering near 7%, after touching an all-time high of 7.75%
Wednesday.
And with bailouts on the table for both Spain and Italy, investors are
worried about the odds for a Greek turmoil Citigroup analysts said
there's a 90% chance that Greece will leave the euro currency in the next 12 to
18 months, since the new government hasn't been able to effectively put an
austerity plan in place.
While Draghi was driving the rally, investors also had a fresh batch of
corporate earnings to contend with, with the most anticipated numbers of the
day coming after the close, when Facebook FB reports its first set
of results as a public
company.
Finally the euro popped in response to Draghi's comments, rising more that
1% versus the dollar. The greenback was down versus the British pound, but up
against the Japanese yen.
