Euro surge continues - good!

Euro surge continues - MW

...excellent. the higher the euro the faster the EU will fold and collapse. econ101 - expensive currency is an economic killer. expensive currency in countries with a 25% unemployment rate - is much more than just a killer, it's a freaking sadist... 

well, it finally looks like the US is winning this currency war and all the misery will take place in Europe. and when Greece applies for a new bailout it will undoubtedly be denied. and what was once a good news for Spain to ask for a bailout will now be seen as really bad news because even if IMF and the ECB bail Spain out it will should be clear as day for investors that this money will not be repaid... so look closely at the Spanish bond yields and as soon as they top 6% - this is when Spain will ask for help... as trust in the euro drops the USD will surge causing a massive equity crash. the only thing to prevent it would be the European Constitution that would guarantee the euro survival. will people of EU be tricked into it? i guess we'll see... but i'd say there is a bigger chance of a collapse than a miracle. especially a labor miracle...

and here's another thing to watch out for - notice how the markets rally on updates in the fiscal cliff talks. it means that the market is pricing in the deal. so when the deal is actually reached, and i believe it will be, the markets will reassess it and i see a huge probability that big investors will start removing cash from the market in order to avoid the higher taxes. we have less than 2 weeks before that happen, so don't be fooled by this current rally. it's a price-in type of rally, it's hardly based on fundamental factors aside from maybe increased orders and production for the new year party. even though we saw a decline in manufacturing in NY district just last week... so when holidays run out there will be fewer and fewer reasons to rally and more and more reasons for a bear market.