Euro Continues to Be Crushed, Along with Spanish Banks

Spanish banks are now below the early May lows [

] before some 750B Euros were pledged to contain the issue (not to mention ECB changing its policy to now buy government bonds).

As for the Euro? Again I cannot stress how these moves of such velocity simply should not be happening in currency markets. Quite amazing.

At some point, this Euro swan dive is going to be a massive boon to European - namely German - exporters.

Can you imagine such talk in the United States of Debt? Via

Chancellor Angela Merkel’s Cabinet is meeting to tie up a “decisive” round of budget cuts that will shape government policy for years to come, fueling disagreement with U.S. officials who favor measures to step up growth.
The program, a mixture of revenue-raising measures and spending cuts, include a levy on air travel, reductions in tax breaks for the energy industry and a wholesale restructuring of the armed forces, Merkel told reporters in Berlin today.
Equivalent to about 2.7% of last year’s gross domestic product,...
“The last few months showed, in connection with Greece and other euro countries, the overriding importance of solid finances,” Merkel told reporters in Berlin today at the end of a two-day Cabinet session called to discuss budget tightening. “Solid finances are the best form of crisis prevention.” (I thought almost unlimited government spending was? Hmm! Obviously a culture clash)
Merkel’s government is reining in its deficit and urging fellow euro-region states to do likewise to thwart a sovereign- debt crisis. The savings risk further alienating voters angry at Germany’s 148 billion-euro share of a European plan to backstop the euro .
German 10-year bunds rose, pushing the yield down to a record low today, as concern the debt crisis may spread boosted demand for the perceived safety of the 16-nation currency’s benchmark securities.

Outrageous quote of the year:

"We need to take a path that shows we only spend a sum that amounts to our revenue," Merkel said.

If only she was born in the U.S. - we'd be looking at the Tea Party Candidate for President, 2016!

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