Re: Re: Re: Samir Amin: "Not a Happy Ending"

[Dennis R Redmond]

On Fri, 28 Apr 2000, M A Jones crossposted:

> Mark Milner, deputy financial editor  The Guardian
> Thursday April 27, 2000
> 
> How low can the euro go? ... Today the currency slumped to fresh lows on the
> foreign exchanges despite a rise in interest rates by the ECB.

This is known as a buying opportunity of historic proportions. Some future
George Soros out there is going to make an unholy killing by snapping up
EUR and dumping USD. Exchange rates bounce all over the place -- the yen
was as low as 85 to the dollar in 1995, then zoomed to 142 to the dollar
quite recently, now it's around 106 (long-term averages put the yen at 110
to the dollar). The euro could go as low as 80 to the dollar and as high
as 130, but as long as the EU keeps running big trade and current account
surpluses vis-a-vis the US, investing in its currency is a no-brainer. 

As someone said, somewhere, one should not mistake a data point for an
inflection point.

-- Dennis