Reply to: Eurozone panic is over

[TimberWolf]

So the one they will take is to keep going until Greece and Italy have no choice but to leave.

Sounds like a good plan.

[Doggy Styles]

He'll be gone in April though, surely?

Ah, good point.

Who knows with the French voter though.

[Freamon]

Imagine Sarkhozy being told by the Germans to f**k off with the rest of the dodgy states!

He'll be gone in April though, surely?

[Doggy Styles]

Yes - but it is very hard for a weak currency to leave the Euro. It is easier(though still hard) for a stronger currency to leave.

I still hope there will become a Northern Euro leaving the southerners to the current Euro. The Southern block should be led by France.

Imagine Sarkhozy being told by the Germans to f**k off with the rest of the dodgy states!

[BrilloPad]

So the one they will take is to keep going until Greece and Italy have no choice but to leave.

Yes - but it is very hard for a weak currency to leave the Euro. It is easier(though still hard) for a stronger currency to leave.

I still hope there will become a Northern Euro leaving the southerners to the current Euro. The Southern block should be led by France.

[eek]

There is no orderly solution. The least worst is for Germany and Northern block countries to leave the Euro. The second worst is to print Euros.

But I agree that the wrong decision will be made - not just on idealistic grounds but also because of what is acceptable to German voters.

So the one they will take is to keep going until Greece and Italy have no choice but to leave.

[BrilloPad]

Firstly, they're not doing QE in the standard sense. LTROs are not QE.
Secondly austerity will not work: how on earth are the PIIGs to recover if the medicine is killing the patient? 10 years ago they same medicine was tried in Argentina. It didn't work - they defaulted.
Lastly I hope an orderly solution is found to the Euro problem or the economic consequences could be dire - but I fear not because the Germans are doing what they've always done historically: making the wrong decision on idealistic grounds.

There is no orderly solution. The least worst is for Germany and Northern block countries to leave the Euro. The second worst is to print Euros.

But I agree that the wrong decision will be made - not just on idealistic grounds but also because of what is acceptable to German voters.

[Doggy Styles]

Eurosceptics are in a complete muddle, all they know is they don´t want the Euro to work, because.....well because it´s there.

I haven't detected a complete muddle at all.

Their argument has been consistent for more than 20 years - which is that the common currency won't work in the long run because the member states have such diverse economies, governments and fiscal policies.

And they are being proved right.

[eek]

Eurosceptics are in a complete muddle, all they know is they don´t want the Euro to work, because.....well because it´s there.

Or they've been to somewhere like Spain or Greece and can see that it isn't working.

[sasguru]

Rather like the aspirin that Cameron proposes before he´ll forward the loans?

I like the way the argument switches, before the ECB did quantative easing; this was seen as the reason why the Euro was going to collapse, now they´re doing quantative easing, that´s not right either.

Could it be that the right solution is to get government spending down, and to use quantative easing to get over the cash flow problem?

Maybe...oh hang on, that´s what they´re doing.

Eurosceptics are in a complete muddle, all they know is they don´t want the Euro to work, because.....well because it´s there.

Firstly, they're not doing QE in the standard sense. LTROs are not QE.
Secondly austerity will not work: how on earth are the PIIGs to recover if the medicine is killing the patient? 10 years ago they same medicine was tried in Argentina. It didn't work - they defaulted.
Lastly I hope an orderly solution is found to the Euro problem or the economic consequences could be dire - but I fear not because the Germans are doing what they've always done historically: making the wrong decision on idealistic grounds.

[BlasterBates]

Apparently resumed its downward march now. MArkets see that the loans are just an aspirin to deal with the pain, not a solution

Rather like the aspirin that Cameron proposes before he´ll forward the loans?

I like the way the argument switches, before the ECB did quantative easing; this was seen as the reason why the Euro was going to collapse, now they´re doing quantative easing, that´s not right either.

Could it be that the right solution is to get government spending down, and to use quantative easing to get over the cash flow problem?

Maybe...oh hang on, that´s what they´re doing.

Eurosceptics are in a complete muddle, all they know is they don´t want the Euro to work, because.....well because it´s there.

[OwlHoot]

it ain't over till the fat italian banker sings

one of these countries in trouble is gonna go pop as sure as eggs is eggs

is found dangling under Blackfriars Bridge

[Support Monkey]

it ain't over till the fat italian banker sings

one of these countries in trouble is gonna go pop as sure as eggs is eggs

[sasguru]

The markets keep deciding the panic is over - then 2 weeks later change their mind.

Apparently resumed its downward march now. MArkets see that the loans are just an aspirin to deal with the pain, not a solution

[BrilloPad]

The markets keep deciding the panic is over - then 2 weeks later change their mind.