Euro is breaking down and reached its (at least) 4-year low against US dollar, now trading around only 1.236, below the important psychology mark of 1.25, which was last reached during the period of “flight to quality” when Lehman Brothers went bust. See chart below.
I am betting Euro will go down further.
And I am re-reading this great debate between Milton Friedman and Bob Mundell – Euro may eventually survive, but it will emerge much weaker.
And let’s have a real debate on the wisdom of having a common currency even though European economies are vastly different.