Wednesday, November 12, 2008

Euro vs. Dollar for the last three months ... Time for a European vacation?

With bailouts in the news and rumors of the world progressing to a post-America/Dollar economy, this chart should be a surprise. The past few months have seen a significant drop of the Euro relative to the Dollar. Rumors are that Europe is worse off with respect to the credit crisis than America, and a falling Euro would seem to be a proper symptom. I suspect that this reflects a difference in culture, but also perhaps a difference in agenda of the talking elites. For example, splashing the bad news onto the front page every day regarding the European economy would discredit socialism, whereas splashing similar bad news every day regarding the American economy only discredits capitalism. Any other theories?

6 comments:

Max said...

Hey Looney,

I would say that it is definitely time for vacations in Europe!

Well, I am not an expert on economic issues (it is not my favourite theme) however I heard several reasons to justify the Euro drop: the ECB is going to cut interests rates (to stimulate borrowing & consequently spending); people are selling Euros due to rumours of recession; the Japanese gov. is to sell its yens etc etc...

I don't think that socialism is being discredited in Europe. In fact, I heard last week, the Portuguese left wing saying that the current economic situation was a clear evidence that capitalism has died. Can you believe it? Europe is so proud of its socialism, that even when it messes up under the social flag, it will always blame capitalism.

Looney, come spend those dollars in Europe, you are welcome to do it!

Cheers

Looney said...

Max, I was about to recently as I planned a family Christmas vacation. Probably next year will be good when the Euro is worth less than the Dollar! I need to learn to plan early.

Max said...

Looney,

Early planning is the name of the game, indeed!

Plus, next year the spirits of people will be higher...hopefully (this year they are so down, people are sad it seems)!

Cheers

Delirious said...

My sister is moving to Ireland next month. I'm going to really try to work it to go visit her. :)

Bunc said...

Its a reflection of the fact that much significant trading is done in dollars ( oil for example) and that the dollar is traditionally the cuurency that investors flee to in time of trouble - even iun times when the US itself is in serious difficulty.

All this talk of socilaism in Europe I find quite strange as I am not aware of many real socialist regimes in Europe - most are social democrat which (if you know anything about politics) is a very different thing.

Livingsword said...

LOL

Well we were planning a spring vacation to Portugal but now we are going to Oahu for 2 weeks in February…Oahu was a lot cheaper (about 30% not just with currency but flight etc.) for us Canadians particularly flying from the Pacific coast…poor us having to go to Hawaii…