>The problem with the euro is that it is now an alternative currency only in
>concept. There are not enough euros to really threaten the US dollar. Any
>central banker who will put his reserves in equal distribution between euros,
>yens and dollars will not hold his job by the end of the week. Same with
>corporate CFOs.
>
>The size advantage of the dollar market is going to be around for at least a
>decade, and maybe for the foreseeable future.
Maybe. But, not to be a vulgar marginalist or anything, but what happens at the margin is important, and the growth of the euro market is the new thing happening at the margin. And, within three years, national currencies in the eurozone will cease to exist and gigantic bond and stock markets denominated in euros will be the inevitable result. To paraphrase Michael Milken, who said that an entity with an AAA credit rating had only one way to go, down, the dollar's market share has only one way to go too.
Doug