Reply to: Will the Euro survive the economic crisis?

[sasguru]

It will never happen, just like they would never let all the banks fail, would cause too much panic in the Market. Greece will be bailed out and the banks will have to take haircuts, which they should since they were happy to accept bailout money.

Wrong. The Euro (which is now really the Franco-Mark) has already failed since the ECB is now running policy for the benefit of those two countries to the exclusion of all others. They rest will stay in for now since getting their own currency is even riskier and they will be lent some money provided they behave like the vassal states they now are.

[russell]

It will never happen, just like they would never let all the banks fail, would cause too much panic in the Market. Greece will be bailed out and the banks will have to take haircuts, which they should since they were happy to accept bailout money.

[Jog On]

EUR/USD is above it's descending trendline but not looking that bullish as it's not making higher highs and higher lows. Might be going into a consolidation... I see a resistance pivot level at about 1.4620 which could be a nice short opportunity possibly back down to the 1.4 level.

[Mich the Tester]

Luckily I can't see the latest cretinism that the twat has responded with as he's on my ignore list

It was something to do with Argentina impoverishing its people to pay government debt, which would be quite a performance from a country with 8.5% gdp growth, the highest incomes in Latin America, a well educated public and rapidly falling poverty rates.

[sasguru]

Some of us had the right idea 3 years ago ...

[AlfredJPruffock]

You've hit the nail on the head.

"We're alright Jack"

Do you honestly think the UK will sort it's finances out when everyone regularly stand to attention and sing Rule Britannia?

The pound is going down the pan, next year according to the experts.

Aye BB

But your good self and others forecsast that back in in the winter of 2009 - the boots on the other foot now !

[sasguru]

?

The pound is going down the pan, next year according to the experts.

What's the problem if the pound loses value, unless you're going on holiday?
The Greeks, Spanish et al would love to have the option of devaluation.
What exports we do have will become so cheap, everyone will buy our stuff.
Cheap arms, jet engines and pharmaceuticals for everyone


Boomed!

[BlasterBates]

Nonsense as usual.
Greece is so bankrupt that even if it accepts the austerity it is still likely to default.
And the bond markets are already showing their belief that both Portugal and Spain are bankrupt.
After all when's the last time you used a Greek, Portuguese or Spanish product (apart from olive oil )
The UK still has a few centres of excellence and is not in such a bad state as those 3, but the cake is too small and a natural level of unemployemnt here is about 15-20%.

You've hit the nail on the head.

"We're alright Jack"

Do you honestly think the UK will sort it's finances out when everyone regularly stand to attention and sing Rule Britannia?

The pound is going down the pan, next year according to the experts.

[sasguru]

The Euro countries have been forced into austerity budgets, so things will calm down next year. The positive is that Greece is a pretty small part of the EU, but has brought the excessive spending to a head, without bankrupting the entire EU. If the UK gets a hung parliament it's f****ed because it'll require an austerity package similar to Greece, and there's no way British workers will accept that. In other words it's more or less doomed to bankruptcy before the politicians develop a will for an austerity package.

Nonsense as usual.
Greece is so bankrupt that even if it accepts the austerity it is still likely to default.
And the bond markets are already showing their belief that both Portugal and Spain are bankrupt.
After all when's the last time you used a Greek, Portuguese or Spanish product (apart from olive oil )
The UK still has a few centres of excellence and is not in such a bad state as those 3, but the cake is too small and a natural level of unemployemnt here is about 15-20%.

[sasguru]

It will never* happen.

* Not in the next 1000 years.

A bit like the 1000 year Reich, eh?
Poor AtW, still underestimating the power of the markets.
The Euro was a fundamentally poor idea in the first place (because it shoe-horned non-homogenous economies into the same strait-jacket) and the markets always punish poor economic ideas.

[AtW]

At some point the German may decide to write off the Euro (and their wasted "investments") as a bad thing and re-introduce a new currency: the Deutche Mark.

It will never* happen.

* Not in the next 1000 years.

[BlasterBates]

The Euro countries have been forced into austerity budgets, so things will calm down next year. The positive is that Greece is a pretty small part of the EU, but has brought the excessive spending to a head, without bankrupting the entire EU. If the UK gets a hung parliament it's f****ed because it'll require an austerity package similar to Greece, and there's no way British workers will accept that. In other words it's more or less doomed to bankruptcy before the politicians develop a will for an austerity package.

[sasguru]

Germans banks "invested" a fair bit into Greece, so they are bailing out themselves in the first place - just like what IMF was designed to do.

And Spain and Portugal and Italy?
At some point the German may decide to write off the Euro (and their wasted "investments") as a bad thing and re-introduce a new currency: the Deutche Mark.
Remember Germany has experience of the miraculous effects of introducing a new currency both after their hyperinflation and after the 2nd world war.

[suityou01]

Germans banks "invested" a fair bit into Greece, so they are bailing out themselves in the first place - just like what IMF was designed to do.

Goldmans

[AtW]

Will it? The Germans are already moaning about bailing out Greece.

Germans banks "invested" a fair bit into Greece, so they are bailing out themselves in the first place - just like what IMF was designed to do.