With all this telegraph talk of default and euro doom can someone tell me why

**doodab** · 22 June 2011, 13:24

If Greece falls over actual eurozone rates will rise, making lending in euros more attractive to investors?

The ECB are likely to raise rates again soon?

People are worried about the UK banking systems nearly €200 billion exposure to Ireland?

The yank banks are stockpiling € ready to pay out on all those credit default swaps they wrote?

Someone doesn't believe the Greeks will be allowed to default and so they are hoovering up Greek bonds with their ridiculous yields? Or they are hedging their CDS exposure?

Those countries holding large amounts of foreign reserves are less worried about a Greek default than a US one thus driving them to buy €?

**TimberWolf** · 22 June 2011, 13:31

Gold is heading for the stratosphere today again. Another day another record smashed. Will it speed through 31,000/kg today?

**TimberWolf** · 22 June 2011, 13:35

Greek citizens are emptying savings accounts and buying gold as they brace themselves for the possibility of a sovereign default and a run on the banks.

FT.com / Brussels / Economy - Greek savers rush for gold

**DodgyAgent** · 22 June 2011, 13:36

Originally posted by scooterscot View Post

the pound is tanking against the euro this week? i'd love to know.

XE.com - Free Currency Charts (GBP/EUR)

Obviously the UK economy is poked and because we are out of the Euro Sterling will fall and our exports will become competitive. Give it a few more weeks and I will be in India looking for outsourcing opportunities for "DA's UK offshoring plc" kerching!

**TimberWolf** · 22 June 2011, 13:50

Originally posted by TimberWolf View Post

Will it speed through 31,000/kg today?

Yep.

**BlasterBates** · 22 June 2011, 15:20

....because they're going to print more money.

BoE voted 7-2 to hold rates as growth slows - Telegraph

Don't worry as the UK economy weakens they'll just ramp up the printing presses.

**scooterscot** · 22 June 2011, 21:39

Originally posted by BlasterBates View Post

....because they're going to print more money.

BoE voted 7-2 to hold rates as growth slows - Telegraph

Don't worry as the UK economy weakens they'll just ramp up the printing presses.

Sweet. Would seem a little reckless, is the Government trying to turn the UK into Switzerland II?

Might move back if they succeed.

With all this telegraph talk of default and euro doom can someone tell me why