December 27, 2010 | In: Opinion

The Fall of the Euro, and the Rebirth of American Markets

American Markets have been beaten to death for the last couple of years. Many US listed stocks are currently being traded at ridiculously cheap prices as investors fled stocks to safe havens such as treasuries.

In the beginning of 2010, however, some fresh money was injected in the US markets, some new money, some European money. Apparently it was time for Europeans to flee their markets themselves, and seeing that they can invest either in emerging markets or, mature, undervalued markets, most of them probably went for the second option. Apparently it was a successful move for the Europeans who did that, as they made about 23% when they invested in the S&P rally. Clearly, such investments started reviving the (then) almost dried up American markets.

But why didn’t Europeans choose to invest in their own continent through safe investments the same way the Americans did?

See the difference between the Europeans and the Americans, is that the latter, despite everything that happened to their economy (and the dozens of conspiracy theories) still trust the Feds (that’s why investors were fleeing to treasuries), while the former no longer trust any investment having anything to do with the European economy. I think this is normal, the American system is much more transparent than its European counterpart. The European financial system is full of ambiguities (how hard is it to know if a country is going to default or not, it’s not rocket science, it’s pure math), lies, and fake optimism. How can you trust a system that has no transparency whatsoever, while claiming to be the most transparent in the world? How can you trust a system that created almost a trillion dollars in Euros out of thin air to protect a 10 year old currency that turned out to be the worst thing that ever happened to the European economy since World War II?

I think Europe has to drop this fake “one-currency, one-economy” scam that everyone’s now tired off, and go back like it was 20 years ago. At least then, we were able to tell who’s lying, and who’s not.

1 Response to The Fall of the Euro, and the Rebirth of American Markets

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When Will the Euro Collapse? « Fadi El-Eter

June 24th, 2011 at 11:45 pm

[...] have talked about Greece, Europe, and the Euro a few times before. I have discussed how Greece is affecting the whole European market (and the [...]

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