Wow that was a long read, but very very interesting. To tell the truth I still don't really understand what Eurobonds are and how they work.
I also wonder if Soros is acting here more as a philanthropist or primarily as an speculator. He is famous for shorting sterling, making a £1 billion GBP and being one of the primary players in Black Wednesday, back in 1992: http://en.wikipedia.org/wiki/Black_Wednesday
How much of this article is then spin and how much is it truth? Part of me feels that in the depth of the article is a mixture of the two.
As a resident of Germany with both US dollar and UK Sterling investments, I am interested to know where I should start to move my assets should a) Germany accept Eurobonds, or b) Germany leaves the Euro.
Since a) is presumably probably more likely, would the Euro immediately become stronger? Should I start moving money back into Euros already? My assumption is that should Eurobonds come in, the Euro will regain its previous strength against the dollar and sterling, hence I should be moving money into Euro. I assume that a strengthened Euro would also have a negative effect on sterling? Especially considering the relative weakness of the UK economy in the short to medium term. All of sudden the Euro isn't the punchbag of the speculator and they go after the next lame animal. In my opinion, that could well be the United Kingdom.
I also wonder if Soros is acting here more as a philanthropist or primarily as an speculator. He is famous for shorting sterling, making a £1 billion GBP and being one of the primary players in Black Wednesday, back in 1992: http://en.wikipedia.org/wiki/Black_Wednesday
How much of this article is then spin and how much is it truth? Part of me feels that in the depth of the article is a mixture of the two.
As a resident of Germany with both US dollar and UK Sterling investments, I am interested to know where I should start to move my assets should a) Germany accept Eurobonds, or b) Germany leaves the Euro.
Since a) is presumably probably more likely, would the Euro immediately become stronger? Should I start moving money back into Euros already? My assumption is that should Eurobonds come in, the Euro will regain its previous strength against the dollar and sterling, hence I should be moving money into Euro. I assume that a strengthened Euro would also have a negative effect on sterling? Especially considering the relative weakness of the UK economy in the short to medium term. All of sudden the Euro isn't the punchbag of the speculator and they go after the next lame animal. In my opinion, that could well be the United Kingdom.