In the last six months I found out Google News has a section called “Currency markets”. I’ve added it and it has been interesting to casually follow the problems of Portugal, Ireland, Italy, Greece and Spain.
Here’s three interesting articles from the last 24 hours, regarding currency markets:
This comes after Greece announces they plan on writing off 50% of their debt. These are some huge moves to secure relatively low-risk currency investments, all over the globe. Last month, investors were buying in to Swiss Francs. The Forex markets have always been busy, but in this case we’re talking 5% of Hungary’s GDP being pulled out by foreign banks, and double digits for Brazil’s GDP. In any other situation, one would classify this as economic warfare.
Somewhere, brilliant people sit in think tanks and help make fiscal policy decisions for huge banks. You wouldn’t see this sort of global landslide shift in movement of wealth to safe havens if very smart people were not predicting a serious event happening in Europe in the near future. I think at this point, it is no longer an “if”, but “when” for Greece and the fallout with the Euro.