Angela Merkel, it's time to act!

[minestrone]

It's a feckin disaster, something has to change.

My investments are just ticking over at the moment, I would have to say the last 4 years will probably cost me a year or so of retirement.

[SupremeSpod]

It's a feckin disaster, something has to change.

My investments are just ticking over at the moment, I would have to say the last 4 years will probably cost me a year or so of retirement.

Day trading on Lloyds shares could have made you sh!tloads this past month.

[sasguru]

It's a feckin disaster, something has to change.

My investments are just ticking over at the moment, I would have to say the last 4 years will probably cost me a year or so of retirement.

London and SE property is what you need.

[AtW]

Anybody with cash in a Greek bank.

Ok, so Greek bank run happens - Greece will get same assistance as Spain did, so long as they stay in eurozone - yet another reason for them not to wish to leave it.

[Doggy Styles]

Whatever happens, the northern economies will have to pay. It's now time to come up with a credible plan that at least has half a chance of being accepted by enough voters to see it through. I don't think closer union will be accepted, so the option to split the euro seems to be the one on the table. Seeing as Holland doesn't have a fully functioning government and France is now run by a lefty who wants to maintain low pension ages, it's going to be up to Germany to take the lead, and that means it's Mrs Merkel's moment to step up and give some leadership.

What can she do?

Does anyone know what will happen if she announces the euro is to be split into a 'good euro' and a 'bad euro'?

From what I can see, the best time to leave the current eurozone is when your economy is quite close to the eurozone average, because market adjustments and movements of funds will be less dramatic. That rules out the PIIGS (too weak), possibly France (with their new government possibly soon to be too weak), and Germany (too strong).

But the likes of Finland, Netherlands, Belgium, etc. could possibly get away with it, with or without their own common currency, leaving Germany to carry on supporting the basket cases in the empire they've created.

However, Merkel can't really announce that either.

[minestrone]

Not checked morningstar today, might not want to.

I have the option of retirement at the moment, can't understand why I don't.

[Doggy Styles]

Ok, so Greek bank run happens - Greece will get same assistance as Spain did, so long as they stay in eurozone - yet another reason for them not to wish to leave it.

The don't want to leave it for the same reason that passengers on the Titanic kept climbing up the decks while it was sinking. Dry feet for a little while longer.

[AtW]

The don't want to leave it for the same reason that passengers on the Titanic kept climbing up the decks while it was sinking.

No, they don't want to leave because unlike you they have good understanding of what weak currency like drachma can do to a country attacked by hedge funds and dirty spekulators.



Greece would be back to 40-50% inflation at the very least. Their only savior in this storm is euro currency - without it they won't even get any bailouts to support their banks if that becomes necessary.

[BlasterBates]

Just to set the record straight. No country has paid anything yet.

The fund works as follows:

Germany or the Netherlands borrow at 1% or whatever it is they can raise on the capital markets and lends to Greece or Portugal at around 3 or 4%.

In other words the Northern countries at the moment are actually making money.

Just thought I'd point that out.

[DodgyAgent]

Ok, so Greek bank run happens - Greece will get same assistance as Spain did, so long as they stay in eurozone - yet another reason for them not to wish to leave it.

Greece is caught in a downward spiral of austerity. They can of course remain in the Euro where they will have no chance of stimulating their economy through lower prices (exchange rates, labour on manufacturing and general investment). Or they can leave the Euro and become a more competitive economy to invest in.