At the beginning of May I said that the Greek demonstrations would drop off dramatically. Of course nobody listened… What has happened? Oh yeah the Greek demonstrations have dropped off dramatically.

So why did this happen? It is because the English speaking media does not understand mainland Europe. In fact the English speaking media is pretty ignorant of everything that is not English speaking.

Let me illustrate another misunderstanding. These folks are talking how the Euro dropping is bad, and that the European economies will do bad. YET, and here is the big YET… Oh this will be great to take a European vacation.

Don’t you get it? If you think on the one hand that the European mainland will collapse, but then travel there on vacation the economy will grow! In fact I hear it among all of the American’s. Oh great now we can vacation in Europe on the cheap. That means the Euro-zone economies will expand, while the strengthening currencies just keep loosing business. This is pure Schizophrenia!

Remember that mainland Europe does not care that much for financial engineering, and in a Swiss poll only one guy on the street said what was happening is a problem. Want to know why? Because he is a fund manager. The rest are just average people who really don’t care, or more aptly put they just want to make sure they make more money.

Having the Euro tank when Germany introduces stronger financial regulations only emboldens the people to stand behind the Euro. Take it from the perspective of somebody on the street. If they see stronger hedge fund regulations and stronger financial regulations resulting in the market tanking the person on the street is going to say, “good for the government”. It is populism in its purest form, but the hedgies are making themselves easy targets.

The hedgies are as stupid and greedy as ever. They think because they can push around the governments in America or Great Britain that they can do the same on mainland Europe. Sorry hedgies you are dumb! GIVE IT UP! The more you push the easier it will be to push through regulations against you. And the more, I as another market participant will have to suffer because of your lunacy!

What I wonder is how long the USA is going to watch this. After all with a strengthening dollar the US competitiveness has just gone out the window. How long before the US starts clamping down. After all, the populists fuse for the financial community has gotten mighty short.