Wise to admit we don't know whether sterling's pounding will continue

[Cyberman]

I think we could even see stress on the Euro itself. With the various countries in the Eurozone having different economic pain-points and degrees of pain (for example compare Ireland with Germany), the lack of flexibility on individual monetary and fiscal policies could prove very interesting. It wouldn't surprise me at all to see a couple of countries in the Eurozone throw their teddies out of the pram in the coming 12-18 months.

WHS !!!!

[SantaClaus]

The reluctance of Europe to cut interest rates is just more proof that we are better to be out of the Euro. The Eurozone will only stagnate with this policy, while the UK economy improves with our lower interest rates.

I agree with you that the Eurozone holding rates will be at the detriment to Europe. But due to the interest rate differentials and dire UK outlook, the euro will continue to appreciate against the pound.

Eventually, the high euro will hurt Europe and the £ will recover against the euro. But I dont see this happening for a very long time.

[bobhope]

The article makes sense, but unfortunately, it's written by Roger Bootle

[BrilloPad]

The article makes sense, but unfortunately, it's written by Roger Bootle

He called the top of the house market in 2004 : what else has he done to offend you?

[BlasterBates]

Interesting article

Basically the view is, this isn't a crisis but benign devaluation.

However if a crisis were to occur, it would happen unanounced....

a bit like Northern Rock and all the other disasters recently.

scary