Spain in state of total emergency

[Doggy Styles]

It goes completely against the grain to agree with Sas, But I agree with Sas

Er, me too.

[NorthWestPerm2Contr]

Here is a solution (Call me an idiot if you will).

All debts in Spain and Greece are to be repaid interest free (that is 0%). That way they will see light at the end of the tunnel and will not just keep paying more and more interest.

Maybe Muslims have a point in this whole Islamic Banking system (though I am not sure how different it is to interest). Point is interest is forbidden and in part I can see why..... though not sure what the alternative exactly is.

[darmstadt]

Maybe Muslims have a point in this whole Islamic Banking system (though I am not sure how different it is to interest). Point is interest is forbidden and in part I can see why..... though not sure what the alternative exactly is.

Not just Muslim but the Catholic religion is, supposedly, against interest as its a form of gambling. Interesting that its Catholic countries which are going under...

[BlasterBates]

If anything the fact that these countries have the Euro ameliorates the crisis somewhat, as load of shock devaluations and forced bankruptcies would have meant a credt crunch would have been more likely.

Anyone believes that banks don't go across borders to gorge themselves on property booms, government debt is living in a Eurosceptic world of fantasy.

Iceland for example. How did Iceland's banks feast themselves on debts which were multiples of the country's GDP.

People would have been queueing up to invest in DM or £ denominated Spanish accounts to earn a 0.5% more interest.

[NorthWestPerm2Contr]

Not just Muslim but the Catholic religion is, supposedly, against interest as its a form of gambling. Interesting that its Catholic countries which are going under...

Fair dos. For me it is an interesting point, whether it is Christianity or Islam or whatever. Apparently God is telling us be careful of dealing in interest, it aint good for you. But we always seem to know better......

[TimberWolf]

There seems to be an element of a pyramid scheme to borrowing, which is perhaps one reason why money becomes unstable.

The first person to borrow gains a huge advantage over his/her competition and races ahead in his/her endeavours, but as the competition borrows too, it catches up. So to get ahead in the game, borrowing increases further, prices go up, and so on it goes. There probably is net gain to borrowing as money is circulated more efficiently that if sitting idle in some rich person's bank, but then again that rich person probably gets richer than ever when debt/interest are repaid. Until the day his head is lopped off by the impoverished masses that is.

[sasguru]

If anything the fact that these countries have the Euro ameliorates the crisis somewhat,.

Does that qualify as most stupid statement of the year? I think so.
There is no solution within the Euro for the Greeks (and probably the rest of the PIIGS) - unless that solution is abject poverty.
All the Asian countries, Iceland, Argentina, UK etc had/have a way out as they have their own currency, run for themselves not for the benefit of Germany.

[BlasterBates]

Does that qualify as most stupid statement of the year? I think so.
There is no solution within the Euro for the Greeks (and probably the rest of the PIIGS) - unless that solution is abject poverty.
All the Asian countries, Iceland, Argentina, UK etc had/have a way out as they have their own currency, run for themselves not for the benefit of Germany.

If Germany had the DM, the only country in Europe that gives a glimmer of hope and the financial clout to get the others out (Eurobonds) (and incidentally providing plenty of jobs to Greeks and Spaniards) would be diving into a deep recession as a result of a ....wait for it.......a currency crisis i.e. other currencies collapsing and the DM going sky high.

[EternalOptimist]

You're missing the major fact that the artificially low interest rates the Euro countries enjoyed (which were right for Germany but not for anyone else) meant borrowing was cheap and so people could run up those debts in the first place.
If interest rates are 15% as opposed to 3% people and businesses think harder about borrowing money.

FFS why don't you guys do Economics 101, science 101 etc before spouting bollox on here?

Low interest rates dont force people or governments to borrow to spend. They have the option to live within their means

the problem in Europe is a mismatch of economies, the problem here was a bobble eyed buffoon in charge of the purse

[Doggy Styles]

Does that qualify as most stupid statement of the year? I think so.
There is no solution within the Euro for the Greeks (and probably the rest of the PIIGS) - unless that solution is abject poverty.
All the Asian countries, Iceland, Argentina, UK etc had/have a way out as they have their own currency, run for themselves not for the benefit of Germany.

Feck, it's happened again!