Latvia cutting themselves off from future funding.

* New Latvian primeminister promises NOT to fulfill the IMF loan terms


The new Latvian primeminister have opened up by making sure Latvia is cutting itself off from future funding. Once the IMF money is thrown away to the ever widening current account deficit, there will be no other option than devaluation, since there will be no more foreign loans to be had.

Expect the Swedish banks to start tightening their balance sheets further, focusing on their domestic market. This will leave Latvia in a very dire situation indeed. The devaluation countdown has started. The sooner the Latvian politicians realise that they had better start saving the IMF money for the post deval chock, the better. No point in sacrificing it for a deadend strategy.



As usual, good luck





The comments and posts published in this blog ARE NOT trading recommendations. They can NEVER be considered as trading calls or advices. If you decide to use the information offered here for your real trading it is at your own risk.

Trading on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
Errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice."www.todaysmacrotrading.blogspot.com" will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

© 2008 "www.todaysmacrotrading.blogspot.com:The traders blog" All Rights Reserved.