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I do not think the end of euro equates to collapse of EU economies. Again, why would it?
Because European and American banks would fail. There would be another "Lehman Moment". Only difference is this time around no one will be around bail out the Banks. Global Collapse will be the result. Think Banking Collapse of 1929 only in a globalised World. Now, thats scary.
Because European and American banks would fail. There would be another "Lehman Moment". Only difference is this time around no one will be around bail out the Banks. Global Collapse will be the result. Think Banking Collapse of 1929 only in a globalised World. Now, thats scary.
Why would they fall if countries go from one currency to another?
Because failing nations like the PIGS, will have to pay their Euro debt in their new weaker currencies. They won't be able to service their debt, because the payments will be to high. Banks will have to take haircuts on a grand scale. Which will lead Banks to fail on a grand Scale.
Because failing nations like the PIGS, will have to pay their Euro debt in their new weaker currencies. They won't be able to service their debt, because the payments will be to high. Banks will have to take haircuts on a grand scale. Which will lead Banks to fail on a grand Scale.
I think such things can be resolved through negotiation.
I do not think the end of euro equates to collapse of EU economies. Again, why would it?
Unnamed British officials are saying that the UK GDP would fall 7% in the event of a euro collapse. And Britain isn't even in the Euro! It is, however, home to Europe's largest banks, most if not all of which would have their balance sheets hit hard.
That has almost nothing to do with it. The problem is monetary union and each countries individual problem is that they no longer have control of their currency. Argentina was in way worse shape than Greece. They let their currency devalue and now they are doing much better.
besides, greece really is the scapegoat here. how many people even know that greek debt represents less than 3 percent of the total owed by eurozone countries?
greece takes their mind off all the other debt. of course, their debt to GDP ratio is higher so they will "blow up" first.
Greece should have been shown the door long ago but the technocrats were afraid it would cause more problems in larger weak countries. So they tried to keep a united front.
But in Germany it's not PC to advocate for a return of the Deutschmark, the nazi card is usually played out very fast.
Mainstream Opinion in Germany is that if Germany would leave the Euro, that there would be war Europe once again. Because according to mainstream opinion the EU project was started so that Germany wouldn't grow to big. Because you know deep down Germans are Nazis and if they grow to big they will go around plunder the rest of Europe again. Always keep in mind that there wasn't a single European country that supported German Unification.
The Deutsche mark was used for fifty years after the Nazis, I'm not see the Nazi link here.
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of course, their debt to GDP ratio is higher so they will "blow up" first.
