European economics......................a lil' help if you can.

[Muggins]

The Euro has royally buggered everything up. Simple as.

 

[TheFinnFan]

The Euro has royally buggered everything up. Simple as.

i tend to think so too...

 

[Muggins]

What was the official reason for introducing the Euro???

 

[TheFinnFan]

to fyck things up.

federal state!

 

[Neiler]

It won't work that way. All that will happen is that Greece will default on the debt and basically declare bankruptcy and "start anew".

It's like if one of us defaults on a credit card from Halifax - realistically, there's nothing Halifax can do after a few years but waive it away, or you could make a settlement offer after about five years.

Basically, Greece will walk away from the Euro with stagnant debt that a small amount will be repaid about a decade from now or it'll be waived completely.

Or, as davek says, the Eurozone bail out Greece then turn attempt to basically turn a blind eye to the problems to save embarrassment.

A large chunk of that debt though, will see hits taken all around Europe and the world - i know the ECB/IMF is a huge chunk of that debt but i would imagine other senior bond holders and banks prob have money in Greek bonds - always a risk of contagion.

 

[Clint Planet]

Portugal must be sh*tting itself.*








*[Not unlike myself. I'm off work with the wildies today]