Europe Considers Euro Bailout Aid for Banks: Report

By Joe Gelet:Based on an overwhelming bearish negative bias on the euro (FXE) from multiple sources (individuals, banks, analysts, and fund managers) we believe selling the euro on any run-up is a viable strategy.

BERLIN (Reuters) - Cyprus's request for a bailout has created a political headache for German Chancellor Angela Merkel on concerns wealthy Russians could be the chief beneficiaries, the weekly magazine Der Spiegel said on Sunday, citing an intelligence agency report. Cyprus is in talks with international lenders on the terms of a bailout expected to total 10 billion euros after its two largest banks incurred huge losses due to the Greek debt writedown earlier this year. The scale of the aid is tiny compared to Greece and other struggling euro zone countries. ...

According to IIF director Charles Dallara in a Bloomberg interview, "ECB will be insolvent if Greece were to exit the euro. Europe would have to first and foremost recapitalize its central bank." Excuse me for asking but how would they attempt to do that? Print Euros? Please consider Dallara Says Greek Euro Exit May Exceed 1 Trillion Euros

Yields on 30-year and 5-year bonds in Spain hit a euro-era record on Friday as the Valencia region of Spain filed for financial assistance. Bloomberg reports Spain Bonds Slide as Valencia Aid Request Deepens Crisis

The Eurogroup of euro zone finance ministers is currently holding a conference call on what to do next with regard to the Cyprus bank bailout situation, which is quickly spiraling out of control.