[Closed] European economic crisis..

I assume you didn't look at this "unpopular" news outlet?

http://www.telegraph.co.uk/news/worldnews/europe/italy/9263021/Soldiers-may-be-deployed-to-protect-Italian-tax-offices.html

Well.. that story was from a week ago.. I was more interested in the last 24 hours apparent escalation of protests.

BY the time the dust has settled on the inevitable Greek exit from the Euro, I expect most of southern Europe will be in flames.

You can't really expect to have 40-50% of your nations youth sat on their arses, skint, and doing nowt, with zero chance of it getting any better, and expect them not to conclude that torching things might be a good idea.

If I was in their shoes, feeling totally betrayed and marginalised, I'd be busy making petrol bombs too. Lets be honest, you've got precisely **** all to lose

ah binners bringer of optimism to all things European

you are nigel farage and I claim my 5 euros 😉

BY the time the dust has settled on the inevitable Greek exit from the Euro,

It won't happen, TJ has proclaimed it so

I'd just fancy lobbing some petrol bombs about and turning some cars over. Obviously I'm a bit too old for that nonsense though, so I'll just watch it on telly, while tutting loadly 😉

I was listening to an economist this morning who said something really scary. Greece could default AND stay in the Euro. There isnt a damn thing anyone could do about it, they can just refuse to pay, there is no mechanism to chuck them out.

Under which scenario I reckon Teej will be here saying "Told you so, the Euro is not a failure and no-one is going to leave."

maybe the Italian Govt only keeps tax records locally... 😉

Greece could default AND stay in the Euro.

True. Why wouldn't they do this?
Problem shared is a problem halved, and all that...

Greece could default AND stay in the Euro

Just wait until they work out they can print their own €uro notes 😉

was thinking about the prospect of the run of Spanish banks. And I found myself asking the question is very low interest rates putting a strain on the Banking system, not just Spain but every where ? Why keep your money in a Bank if its earning less than inflation ?

If I was in their shoes, feeling totally betrayed and marginalised, I'd be busy making petrol bombs too

Klunk - Member
Why keep your money in a Bank if its earning less than inflation ?

Its called financial repression and we will all have to come to terms with it. We will live with negative real interest rates for many years as governments seek to reduce the debt burden. Look at UK history 1940-60s, the same thing happened.

http://www.ft.com/cms/s/0/58078892-9abc-11e1-94d7-00144feabdc0.html#axzz1uyH0Nfwd

The financial crisis was caused primarily by excess liquidity from central banks at a time of historically low interest rates. And look what happened. And now we have, err, excess liquidity and negative real interest rates so you either essentially pay governments to borrow from you or your are a PIG bank and you play the current ponzi scheme of taking ECB cash and investing (sic) in your own country's bonds where the credit rating is deteriorating by the hour and you are holding a depreciating asset. You couldn't make this up....

Technically and legally, Greece can default and stay in the euro, but in practice this is most unlikely. For the very simply reason that it ignores the social impact. The Greek people have had enough of wage deflation and austerity and the hope of, err, stabilisation. Without an FX adjustment they cannot compete and the people will vote with their feet and their petrol bombs sadly. But can you blame them - betrayed by the Europeans, their own politicians and the financial markets (well done GS!?!). Extremely sad.

Money is now being withdrawn in Greece, Spain and Italy and Grexit talked widely. Its a matter of time now. They have 6 weeks before the next bill!!