14th January 2011
The Guardian have reported how the shares are moving.
drjonathanwilson comments: "Now what would you do if you feared a run on the Euro as the underlying insolvency of Spain and Italy comes into focus? The cheap and cheerful response is to pretend to raise the interest rate which is what Trichet has done. Unfortunately for him and his backers it cannot work as there is no economic power on earth more powerful than compound insolvency at destroying the best laid schemes of mice and men. Nevertheless expect Trichet to make more rate increase noises in the future as a short run palliative that merely adds to the already long run compound insolvency of the PIIGS. When the Euro goes it will happen within hours. I wonder how many EMU central banks have their contingency plans in place for such a scenario."
waramess says: "It's interesting they are unable to see it is the value of paper currencies falling against commodities and the only way out of the problem is to raise interest rates to make paper currencies a more valuable commodity to hold. Either that or to stop printing the stuff and spreading it around as if it were confetti."
"Goldman Sachs has revealed details of about $5bn in investment losses suffered during the crisis for the first time this week, in a move that will deepen the debate over companies' financial disclosures."