The Continental Economics Institute Currency Review
Friday, May 14, 2010
Euro with Greek letters
“Investors had always regarded the euro as a de jure German mark,” Louis Bacon, founder of the $15 billion hedge- fund firm Moore Capital Management LLC, wrote in an April 16 letter to investors who have made an annual return of 20.5 percent from his flagship fund during the past two decades. “It’s dawning on the world that it is becoming, de facto, a Greek drachma.” Full text Comment: I still believe that what is currently happening at the currency markets is pretty irrational and not backed-up by the fundamentals.