* A bizarre attempt to understand what is happening right now with the Euro*
After negative interest rates the euro should be down; but it has moved up...
Okay..negative interest rates should mean that banks will be charged for holding cash in the interbank arena... which means that they are better off loaning the money out rather than keeping it...
Here is what banks and banking aligned hedge funds have decided to do...take that money and pump it in the euro... so that this can prompt draghi to give more QE; which will ultimately inflate the value of stocks and real estate in europe!
Does that sound like a plan...or am I on something
After negative interest rates the euro should be down; but it has moved up...
Okay..negative interest rates should mean that banks will be charged for holding cash in the interbank arena... which means that they are better off loaning the money out rather than keeping it...
Here is what banks and banking aligned hedge funds have decided to do...take that money and pump it in the euro... so that this can prompt draghi to give more QE; which will ultimately inflate the value of stocks and real estate in europe!
Does that sound like a plan...or am I on something