a curious Yankee in Europe's court

blog about living in Europe, and Italy

Hedge funds et al trying to take down the Euro

Posted on the February 10th, 2010

In the European press, some are claiming that much of the hysteria about the health of the Euro is being deliberately hyped by a major American investment bank and hedge fund traders. That’s not to say that there aren’t huge problems for some EU member countries at present. But, reportedly, the usual greed suspects (who call themselves geniuses because they can do a little math) seem to be trying to push things over the brink so they can grab some quick profits.

And I’ve no doubt they will wave the flag a bit as they are doing this, as cynical justification for again doing whatever works best for them.

Admittedly, the news and commentary I’ve read coming from the USA and the UK are characterized by many thumbs down on the European monetary system. This week’s blog post by Paul Krugman at the New York Times is an example (I’m a Krugman fan, more often than not).

For anyone seeking to hear another perspective (or perhaps Euro-friendly voice), though, here’s an excerpt from an article in yesterday’s Deutsche Welle online:

Dta from the Chicago Mercantile Exchange, often used as a proxy of hedge fund activity, showed that investors had bet $7.6 billion in short positions against the euro in the week to February 2. This was the highest level since the single currency was created in 1999, the Financial Times reported on Tuesday.

I’ve learned to read all news with a filter for ideological bias, nationalism, personal gain or interest, or just simple cluelessness. Where under all this cacophony is a fairly accurate picture? Who are we to believe?

UPDATE: “Germany contemplates handout for Greece “ (Deutsche Welle, Feb 10, 2010)

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