Euro plunging overnight to multi-year lows on fears Germany will bail on EU bailout.

[Statistical]

Germany high court is considering blocking the German contribution to EU debt bailout package on Constitutional issues.



Broke through 1.19 EuroDollar cross about a 1% fall in hours. For anyone who follows currencies they know a 1% daily move is large move.
1% in less than an hour.... the second largest currency in the world shouldn't trade like a penny stock.

Without Germany's support the Euro and EuroZone are toast.

http://www.zerohedge.com/article/plungorama-eurusd-under-119-eurjpy-under-109

http://www.zerohedge.com/article/eurusd-plunging-news-european-aid-package-jeopardy

IF Euro falls below 1.17 it will hit a 7 year low. It hasn't been at parity since July 2000.

[Name removed]

1. Deleted message

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[rockymountaindem]

2. I guess that's going to wreck the stock market tomorrow

When it's not one thing, it's something else.

[Statistical]

4. Magic 8-ball says "outlook is not good"....

Germany is the lynchpin for the EU.

Just the rumor that the high court "might" just "consider" hearing case on blocking Germany involvement in debt package has tanked Euro.

If this goes through (I don't think it will but I am no expert on Germany politics) the EU is dead. Euro crashes through parity like it is paper support and plummets to who knows where.
Without EuroZone most of Euro falls back into deep depression, spill over effect in US financials. Essentially a body slam to an already weak and fragile US economy.

[FarCenter]

13. S&P 500 futures down 10.30 to 1055.80

[L0oniX]

3. This is actually good for my business. I purchase electronics from Europe.

[Statistical]

6. Well two sides to every coin right.

Glad you are on the right side of that one.

I wouldn't sign any long term deals. You could be buying stuff even 20% cheaper in another 6 months. Likely suppliers will get scared and want to lock in some contracts for stable greenbacks. Might even offer some nice discounts if you do so.

[L0oniX]

10. Oh I already know of suppliers in my field who are getting caught in this.

Most try to not over stock though. Only the most optimistic would be brave enough to order a huge stock of parts.

[Better Believe It]

8. And what do you do with the electronics you buy?

[L0oniX]

9. I install them.

[Ruby the Liberal]

5. Parity in 3...2...1...

[AngryAmish]

7. Soros doubling his fortune in 3..2..1...

[depakid]

11. The chart doesn't look like a "plunge" to me

and I do follow currencies, so color me unimpressed with a 1% swing.

[tabasco]

12. West Germans were pissed about paying for rebuilding East Germany.

I think they're weary of paying for other people's problems.

[FarCenter]

14. There's a lot of fear about what bank has how much of each country's debt

But that is meaningless unless you know how the Credit Default Swap positions and other derivative positions are arranged.

And no one knows that, since many of the derivatives are done privately and bilaterally between parties.

[Lost-in-FL]

15. I will be going to Greece in a week.

Might be able to buy the Akropolis at this rate.

[nadinbrzezinski]

16. Holy shit!!!!!!

that ride is 'bout to get REALLY bumpy.

[Lucky Luciano]

17. Posting a Bloomy image! I have to say that Bloomberg's service is fantastic! nt

[lovuian]

18. The Germans will not hyperinflate

they have lived through this Bull before
they will ask the defaulting nation to leave until it resolves its problem

of which the Euro will plummet

[roamer65]

19. Maybe those pre-Euro Deutsche Mark notes I have will be remonetized soon.

Not good.