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.
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-Fund
Read the Forex Conspiracy Report for insights into
trading foreign currencies. Get your copy at
http://portal.sliderocket.com/BLOUC/Larger-Euro-
Zone-Bailout-Fund
www.ForexConspiracyReport.com
3. 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.
www.ForexConspiracyReport.com
4. Published figures of €500 Billion
indicate a fund four times the size
of the recent Greek bailout cash
infusion.
www.ForexConspiracyReport.com
5. According to press reports a final
decision on creating a larger Euro
Zone bailout fund have been put
off for a month.
www.ForexConspiracyReport.com
6. Considering off again and on
again nature of negotiations with
Greece this sort of delay is no
surprise.
www.ForexConspiracyReport.com
7. 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.
www.ForexConspiracyReport.com
8. 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.
www.ForexConspiracyReport.com
9. 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.
www.ForexConspiracyReport.com
10. 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.
www.ForexConspiracyReport.com
11. 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.
www.ForexConspiracyReport.com
12. 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.
www.ForexConspiracyReport.com
13. 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.”
www.ForexConspiracyReport.com
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 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.
www.ForexConspiracyReport.com
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. 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. 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.
www.ForexConspiracyReport.com
18. Unfortunately, this is exactly when the Euro Zone
economy needs to be humming along in order to
repay all of that debt. Forex traders are aware that
a Euro Zone recession, larger Euro Zone bailout
fund or no, will likely drag down production is Asia
and affect North America.
www.ForexConspiracyReport.com
19. Then the question for Forex traders will be
just 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. For more insights and useful information
regarding the Forex markets and foreign
currency trading, visit
www.ForexConspiracyReport.com.
