est2007.si - Est 2007 - Financial Brokerage House

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The credit insurance on Greek government bonds account for only a fraction of that. Speculators are not to blame for the crisis of the euro. Rather it is the high public deficits. With 750 billion euros, the European Community has put together an unprecedented rescue package. Specifically we want so the speculation against the euro put a stop to. The fact is neither the speculators are to blame for the decline of the euro, even at the precarious situation of Greece.

The real cause of the euro crisis is obvious. Guilt are only alone the huge debts that were accumulated by lack of budgetary discipline. Trading in credit risk (CDS) reveals how high the probability of default of Greek loans is now estimated. The CDS spread increases, it indicates that risk seller and buyer risk assessment of the risk of default later. But rather than reflect and to maintain fiscal discipline, will look the other way you prefer and now thinks aloud about restricting trading of credit risks,

Certainly, few investors maximize profits with the euro weakness. It speaks much to suggest that the pressure of the past few days, especially on the sales of insurance, pension funds and banks results, seeking to minimize the risks to themselves and their customers. This is due to the loss of confidence in the euro because of the high debt. This has nothing to do with market failure but with state failure.