Saturday, April 4, 2026

June 4, 2010

The Buyer of Last Resort

The Euro is trading at the important 1.2 level. The final defense of the euro (the buyer of last resort) is the fed–through their swap lines. There is a massive amount of liqudity due in the next month, which will strain the limits of the fed itself. The Euro faces a scenario best described by the prophetic words of Led Zeppelin.

“If it keeps on rainin levee’s gonna break.”

June 2, 2010

Games People Play

The Euro broke recent lows today only to be squeezeed higher by the not so invisible hand of manipulation. The manipulation will work until it doesn’t.

At some point the Euro has to be devalued futher. It has no choice.

The trend remains down.

I remain short.

And the beat goes on.


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