- May 4, 2012
Yeah, it's only because of all the bailouts and money printing that there's now an excess to throw around at black holes.You don't need a fortune teller to predict where the rand might be , it is not long term sustainable and that is the only problem. The bounce back to R20 and beyond is going to be far more brutal than the short term recovery that is driven by speculate gambling.
Look at the pre 2008 global recession, the rand peak on and short term recovered for a few months before the world started to get their **** together and since then the Rand kept losing ground.
I see the same thing now, if the Rand strengthen like this be really concerned that we are about to hit a global recession and the longer the ran recovers at this pace the worse this recession is likely to be.
The rand recovering and recovering quickly is a short term speculative result that is masking a much bigger global problem and will bounce back way worse than the short term recovery.