Europe's Medicine Helps Us Too

 | Jan 04, 2012 | 4:23 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

fxe

The CurrencyShares Euro Trust (FXE) is going down now because they are printing euros through this lending program by the tens of billions of dollars. I think the ECB has decided that there really isn't any private money that is going to go into these banks except at a cost like that Unicredit paid this morning.

So they have gone all crony and decided to just flood the Continent with euros to bail out banks until the sovereigns have committed themselves to successful austerity programs. The corrupt bargain -- we will give you money if you buy our sovereign debt -- is alive and well and making it so the euro is going lower, but the economy might grow, which makes all sorts of sense when you think about it. Plus, you have to believe that the Europeans are ready to cut rates again to join the U.S. in ultra-low short-rates.

So, it isn't so much a de-coupling of the U.S. and the FXE but the idea that reflating will hurt the euro, boost gold and take a Great Depression off the table.

Otherwise, we would be hammered. Anything that promotes growth and puts off what may turn out to be not inevitable is good for our stock market, even if the FXE trades down.

And that's where we are right now.

Columnist Conversations

Ford is working on its third straight gain following two days of steep loses to start this week. At this...
Market is holding on for gains for now but think Doug Kass is right and could see some decent profit taking by...
I have a full blown article surrounding the U.S. Retail Sector coming out on soon, but for now let's just lo...
The dividend action is pretty quiet at the moment, but I wanted to point out for those generating income with ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.