Paulson is a buffoon. An idiot. When I listen to him speak, it sounds like they got some homeless, alcoholic bum off the street and put him in front of a mic. I keep waiting for him to say something like "Can I get paid now?" Never be surprised when someone stupid says something stupid.
lol, this reminds me of a press conference a while back when a Bloomberg reporter was asking about the dollar, "We support a strong dollar policy" declared Paulson.....and all you could see on a chart was a straight line up on Eur/Usd! Mind you it was at 1.30 then, I guess that policy just didn't pan out too great
All the people I know who have money (euros) are quite happy with the strengthening euro. All the people I know who have no money or had money but don't have that much any more (i.e. invested in dollars) are very angry of the euro. This is a satisfaction vs. envy/remorse issue. Who are these 'ordinary' Europeans you speak of?
I am here. Strenghening of Euro nearly killed my regular export small business. They only reason that I am still "alive" is that nearly all my competitors bankrupted. I will as well - if the EUR USD will go over 1.7 for sure.
My aunt lives in Paris (Chaville) and she says the French are pissed off at the high Euro and the ECB. She claims that not only is inflation through the roof, but the strong currency and higher rates have essentially destroyed the French ability to grow their economy by the same rate as the inflationary pressures. I'm not saying I agree or disagree - but that is her (and those she knows) view.
I believe it is same in whole EU. Strong Euro is killing exporters and lifting prices of everything manufactured in EU. As minimum manufacturers here are very unhappy - starting with somebody like me with few employee up to Volkswagen concern
I feel you brother... But without giving any specifics I don't really know what your point is. Maybe you left yourself unhedged, maybe not. Maybe you were gambling, maybe not. I give you a counter-example: the three big American automakers are supposed to make a killing in Europe and Asia because of the weak dollar, right? Wrong! Nobody wants their trash, even if it is cheap. Take a Town Car, 45k fully loaded. For the same price you can get a Passat (in Germany). How many Town Cars you see around and how many Passats? So my point is this: price is not the only issue, quality or service can overcome price issues. BTW what do you export?