Euro

What the package has done is help to create a fire-break to avoid the spread of contagion throughout the eurozone.

As was seen during the stress tests carried out in July 2010, the latest ones published by the European Banking Authority on the 15th of July 2011 do not include a proper measure of market systemic risk. This hinders their credibility.

Back on bailout plans granted to countries in the Euro zone encountering severe fiscal deficits since May 2010. How are tens of billions Euros raised, what are they for, and mainly, are those amounts enough to re-establish the public finances and stabilize those countries banking system.

So many reasons to sell the Euro against the dollar. Nevertheless we can expect a fall of the euro in the second half of 2011. The dollar should continue to remain for now a safe haven despite the monstrous imbalances in the US economy and because of the real risk of implosion of the euro zone.

The Greek rescue plan, suggested by a consortium of banks led by BNP Paribas, praises the techniques of structured finance, with this time the politicals’ blessing...