Euro Currency Weakens
There seems to be a parallel between the Euro and the banking system in the US and the demise of Lehman
Brothers. Is Greece like Lehman Brothers? If you bail out Greek bonds, what will the investors in Greek
Bonds do when they receive their money? Will they turn around and invest in Greek bonds again with that
money?
On May 19, 2010, the talk is all about Germany banning the naked shorting of Eurobonds. This means that
you can use derivatives such as puts to hedge bonds if you hold the bonds. What you cannot do is to buy
the puts on speculation. It was pointed out that the selling of a bond by a government is essentially a short
sale.
Investabot
Next
There seems to be a parallel between the Euro and the banking system in the US and the demise of Lehman
Brothers. Is Greece like Lehman Brothers? If you bail out Greek bonds, what will the investors in Greek
Bonds do when they receive their money? Will they turn around and invest in Greek bonds again with that
money?
On May 19, 2010, the talk is all about Germany banning the naked shorting of Eurobonds. This means that
you can use derivatives such as puts to hedge bonds if you hold the bonds. What you cannot do is to buy
the puts on speculation. It was pointed out that the selling of a bond by a government is essentially a short
sale.
Investabot
Next
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