TaxPlanet Magazine | Tax, Money, Business and Economy

BLOG COMMENTS POWERED BY DISQUS
You are here: Politics Miscellaneous Eurozone | It's another Cosmetic Fix

Eurozone | It's another Cosmetic Fix

E-mail Print

If you put one or 100 sick banks in a union, it does not change the fact that they are sick. In my view the markets are rallying because they were grossly oversold.

When markets are grossly oversold, especially markets of Portugal, Spain, Italy, France, then any news that is not disastrous news propels stocks higher. I think that combined with seasonal strength in July, the rally has carried on somewhat.

But it is another cosmetic fix, a quick fix that does not solve the long-term fundamental problem of over investment in the euro zone. And what it does, basically, it forces Germans to continue to finance people in Spain and Portugal and Greece that are living beyond their means.

(Marc Faber in Bloomberg)

Tax & Legal

Business & Economy

Advertisement

No images

Money & Investing

Other Topics

BLOG COMMENTS POWERED BY DISQUS