Piling On

It seems that speculators are expecting a devaluation or the demise of the Euro. There are enormous bets against the Euro in Forex now. The resolution will be interesting to see. Either the currency market is manipulated and a lot of sheep will be sheared or the Euro really is in dire straits which can't be controlled. Personally, I don't trust the Forex market except as entertainment. The evidence of manipulation is too strong and I expect the sheep to be sheared...in a big way. Central Banks have enormous control and it wouldn't surprise me if the ECB (European Central Bank) would suddenly cause a credit contraction which would ruin a lot of people in business and would cause the Euro to get suddenly stronger causing margin calls on speculators who would also lose big on their short positions. The phrase "killing two birds with one stone" comes to mind. Do bankers really want to destroy markets? Actually, no, but when they are faced with the choice of sucking up losses in the Euro or making other people suck up losses, the choice seems obvious. My advice is to avoid Forex for the foreseeable future unless you just want to gamble.