If Europe DOES NOT collapse we are fucked
 

So many banks and hedge funds betting on Europe collapsing if it doesn't billions will be lost in the US. I'm speculating here correct me if I'm wrong.

If it collapses than all trades with USA will die.. that's more than a few billion..

fear is a powerful tool

and ignorance is bliss

Any idea what percentage of the US exports go to the EU?

fear is a powerful tool
and ignorance is bliss

thank you MaDalton, best answer.

Godsmack need your info so I can start sending FZ stuff.

% doesn't count when there is no monies to buy shit with..

It's a sad day when you realize that economies, companies and countries can all be brought down by gamblers.

I will sent you an ICQ with it... FZ rocks...

--and the worst part. They don't produce a single product. That's why they gamble. They have no other talent. Gambling isn't even a talent really, its just desperately hoping you'll get lucky.

As far as I know the US is currently in conflict with about the full globe except Europe and Australia, so if Europe goes down, you'll be out there totally on your own. And without international trade. Europe is the main US supplier of EuroPorn! :1orglaugh

you're wrong. banks and hedge funds have money from both sides of Atlantic. And collapsing regions / countries don't usually end in prosperity of other countries.

ECB already started the printing presses...

Well from what I have been hearing today the market is down because many funds were trying to raise cash, and many of those funds are using the cash they pulled out to bet against europe. Not exactly sure how that works but that's what I heard.

btw: Over the last couple of weeks, Merkel kept repeating that the ECB must remain 'independent'. That should have raised a couple of flags. The ECB starts printing and Merkel can keep on pretending she opposed it.

man you sheeple are doing my head

Europe stands for 32% of the worlds GDP with only 11% of the population

USA: Public debt $14.972 trillion / 99.7% of GDP
Europe: 80% GDP

I don't think the EUR will collapse. Unless the numbers I looked at is all wrong :2 cents:

I think theres a lot more to it than that my friend. Italy has to pay over 7% to finance it's debt and the US pays what 1, 2% ?

The Euro is a dead fucked up duck, I moved my hosting from Netherlands to US cos I was paying in Euros and I just don't even want to have any involvement in that catastrophe.

You amateur economists can trade interest rates, the EURO is dead.

That is like saying USA will collapse because Utah is doing poorly. Italy and greece is less than 15% of the eu cconomy combined.

Its mostly all about the hype

these countries misfortunes will prop up the us dollar again as it begins to be lent out by the world bank.

I could use a little head right about now :Graucho

Did I really just read that title correctly? LOL Don't understand economics much eh?

Guess not, and all those wall street guys betting billions on the EU failing have no clue about economics either. Wall street is short selling Europe right now.

That's what I'm guessing. If the EU collapses the rest of the world will seek safety in the dollar with the train of thought that hey the US survived a meltdown europe didn't. I don't want to se the EU fail. But it is what it is. Guys who are much smarter than me are betting that it will and they stand to make a lot of money if it does.

Reminds me of the banks insuring thier own mortgage securities knowing they would probably fail.

That's a lot like saying that people who buy homeowner's insurance are betting on having a fire so they can collect.

That's what a hedge fund is - a way to partially cover your ass if things go bad. It just reduces the risk. People who have large business investments in Europe hedge against their big risks. They still want to see Europe recover because it helps their main business. Therefore you HOPE that your hedge fund does badly.

A sime example is a trucking company. If the the price of gas go sky high, trucking companies lose money from their main business, trucking. So they hedge against that risk, "betting" on high gas prices (basically getting prepaid gas options). That way if gas prices are low, their trucking business does well. If gas prices go up, they make money selling their cheap gas. Either way they stay afloat and don't have to lay people off. They'd actually prefer to lose money on their gas hedge, because that means gas is cheap and their trucks cost less to run.

Let's say I offered you the following deal:
If porn profits fall off by 10% or more over the next two years, I'll pay you $30,000.
If porn sales improve you're doing fine and I don't have to pay you anything.
I charge $1,000 for covering your ass in this way.

Do you see the value in my covering your risk for you? Without this plan, a major problem in the industry, like .xxx becoming mandatory, might cause you to haves trouble with your house payment. With this plan, you can take buy a house knowing that you'll be able to make the payments because I've taken over your risk. If porn doesn't do well, I'll pay you cash. See the benefit?

That's basically what hedge funds do. They allow your business to operate with reduced uncertainty, making investments in factories, ships, etc. possible where tge associated risk would otherwise be too high. There is some value in that.

Yes, the above description is simplistic, perhaps overly simplistic, but it represents the value produced by hedge funds.

the american dollar sucks big time. It sucks when you live in europe and you getting paid not with euros :(

I don't think the EUR will collapse.

Everything will be fine, no need to be worried..

Not quite correct and you need to add Ireland, Greece etc.. they didn't meet the criteria for joining the euro in the first place... The European politicians wanted to expand the euro so fast that they ignored the key fundamentals that would make the currency work and then ignored what what happening in those countries..

The 'centralised source' as you put it, is basically Germany trying to drive through a replication of German Economic management. Hence their absolute rejection of the ECB injecting money into the economies. But what is right for Germany is not right for other countries with different economies. Now, the inflexibility of the Euro strait jacket is creating havoc in these countries - they need growth but will no way be able to achieve it.

The markets recognise this. Hence the rise of sovereign debt interest rates. UK sovereign debt interest rates are just above those of Germany when our GDP/Debt ratio is higher than Italy, Spain and a a few others. Why? because we can manage our own economy whereas the others can't.

EU will not colapse, they find out some way to fuckit up for some time more

And whose hedging the bets? Other US companies. Billions won't be lost in the US, they'll just move.

u.s will collapse first then europe

Nobody really knows if the Euro will or will not colapse

Anyone who says they know how this will end is deluding themselves

If anything is certain about this crisis, it is that nothing is certain. A big bank could suddenly fail. A government could fall, or announce a surprise referendum. Governments or central banks could conjure up a plan that might, just might restore calm (as in 2008). The economic data could turn out much better, or much worse, than expected. Public protests could explode - demanding exit from the euro, or demanding a democratically elected government in Brussels. Leaders could resign or be removed. Everything could be overshadowed by a crisis in an entirely different part of the globe (Russia? China? Iran?). Making predictions is a fool's game.

http://www.bbc.co.uk/news/business-16098582

what do you mean by so many banks and hedge funds betting on europes collapse? are you insinuating they are all shorting on european companies? There's no way in hell anyone would cover such a thing so what you suggest isn't even possible..


and whats with the anti traders in here? what are you investing in again? ohh right gold...

whats that thing they say about eggs and one basket again? Forget how that saying goes... :1orglaugh

The idea of a hedge fund is to hedge your bets.... Properly run hedge funds find nearly opposite positions and bet on both so they can't lose much no matter what happens and they can make a huge profit in the 'middle' if if both sides of the proposition pay off.

The modern distortion of a 'hedge fund' is billions of dollars being gambled with the idea that if it doesn't work out, the government will print more money and bail out the large funds that lost their bets.

It's why banking regulation is so important and why a lack of banking regulation is more dangerous than terrorism, the European economy, or pretty much anything else from a financial standpoint.

i wish more people would understand that

If you think that this percentage is low, you are wrong:

Some stats for you:

1. The EU is the largest trading partner of the US with $319.6 billion worth of EU goods going to the US and $239.8 billion of US goods going to the EU as of 2010, totaling approximately $559.4 billion in total trade. (2010 stats)

2. The EU and the US enjoy the most integrated economic relationship in the world, illustrated by unrivalled levels of mutual investment stocks, reaching over ?2.1 trillion.

Total US investment in the EU is three times higher than in all of Asia and EU investment in the US is around eight times the amount of EU investment in India and China together.

Investments are thus the real driver of the transatlantic relationship, contributing to growth and jobs on both sides of the Atlantic.

This can also be illustrated with approximately 15 million jobs linked to the transatlantic economy. It is estimated that a third of the trade across the Atlantic actually consists of intra-company transfers. (2009 stats)

As you can see, it's much more than a few billion.

you should worry much more of the state the USA is in. Watch the next two weeks. Big bang in January when shopping spree is over and big job losses will surface.

everytime i think europe is fucked, i check eur/usd exchange rate and figure out usa is even more fucked....

The GFY Economic Summit begins today. The final word in world finance by the porno doowads. Count me in.

You've got the first part right. I disagree with the second part.

The best way to discourage and punish the irresponsible behavior you described is to let the free market process work. Don't intervene! no bailouts! Let the irresponsible ones suffer the consequences of THEIR actions.

I think Zambia will collapse first.

I flipped some gold this month made over 5% on my investment in less than 45 days. Nothing to brag about but a hell of a lot better than the % .0003 banks are paying for deposits right now. In GOLD I trust. LOL

50 more bailouts