Is the Euro Debt Plan Really 'Stupid'?
Just when you thought it might be safe to tiptoe back into risk-on currency trades, along comes Wolfgang Schauble to trash the European debt plan.
The euro has had a nice run this week as traders have digested reports that the stabilization fund may be boosted in a move to resolve the sovereign debt crisis. True, various leaders have said a plan isn't in the works, but the talk has persisted.
Cue the "Jaws" music.
Wolfgang Schauble, Germany's finance minister, has blasted the concept, saying, ""I don't understand how anyone in the European Commission can have such a stupid idea."
Just in case investors didn't get his point, Schauble went after Washington too. In the wake of President Obama's comments on the debt crisis, Schauble said, "It's always much easier to give advice to others than to decide for yourself. I am well prepared to give advice to the US government."
Memo to investors: it's not quite safe to go back in the euro waters.
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