Tuesday, May 11, 2010
Lets close the chunnel now!!
Yahoo: Britain must fend for itself in event of crisis, French official warns
Britain should not rely on EU help in the event of a renewed financial crisis after refusing to sign up to the bulk of a 500bn (£429bn) rescue package for the eurozone, the head of the French financial markets watchdog said.
Posted by mark @ 02:21 PM (1715 views) Add Comment
14 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. alan said...
Were we right to refuse to help our fellow Eurolanders?
If Cleggy joins Labour, I can't see the defecit being cut (except in the budget fairytales which will follow). That means we print more money, the pound sinks and our French Brie gets more expensive.
In the early days, people will have less money to buy houses, but they are seen as a hedge against inflation. House prices will continue to be propped up by low interest rates and another mini boom will probably result.......
Gold $1221.20 right now. Still time to buy.
2. Exiges said...
With all that money we're saving by not bailing out every man and his dog we'll probably be able to save ourselves thanks (maybe)
3. mark wadsworth said...
And rightly so. We really put an end to all these bail outs, which serve neither the long term interest of the bailor or bailee - all it does is store up trouble for the future - today's bail out enables governments to continue on merry spending splurge which place a considerably larger burden on tomorrow's taxpayer.
To paraphrase our Housing Minister, "sometimes the best option is default and repossession".
4. sneaker said...
In case you hadn't noticed, monsieur, we have our own currency and central bank and they give us the freedom to sort out the mess.
That's the way it's meant to work.
Merci pour ton avis!
5. Crunchy said...
Yahoo: "Britain must fend for itself in event of crisis, French official warns"
But it's OK for the French to get bailed out by America. Love em!
6. Ra02127a said...
We should have let the French fend for themselves in WW1 and WW2!
7. mken said...
We are caught in a bailout spiral - who knows what anything is worth. On the other hand do you want to lose your job?
8. drewster said...
Mark W,
It's better still - the best option is default, there is no repossession!
Argentina defaulted on its debt in 2002, and the world didn't end. Read all about it: Wikipedia: Argentine debt restructuring.
It wasn't entirely without tears; some bondholders have attempted to claw back Argentine assets in the USA and elsewhere in the world. They have also tried lobbying the American government, again with little success.
The Argentine government is still unable to borrow money in the international markets and has been forced to live within its means (by running a budget surplus) ever since the default. Is that so bad?
9. The Bull Trap said...
Hmmm. Should we have left the French to fend for themselves during their little crisis in 1940? Ok yes, I know that's completely off the point. I hope we do get left and hung out to dry. I completely aggree with Drewster, it would do us no harm at all in the long term.
10. Alex said...
What comes around goes around. Just like when Bear Stearns refused to contribute to the bailout of LTCM, 9 years later nobody lifted a finger.
http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=a2mbR8rPyzto
11. paul said...
@drewster
I think you'll find that the government basically appropriated savers' cash and every week a not inconsiderable band of them protest outside the government HQ saying
"Give us our money back you theiving barstewards!"
If the UK government confiscated savers' assets to bail out the indebted, I have to admit that I'd be the first to be filling milkbottles at my nearest Shell garage.
12. devo said...
7. paul said... If the UK government confiscated savers' assets to bail out the indebted...
i think you'll find they have
then again, its thanks to the bailouts you have any savings at all
13. drewster said...
Paul,
You're referring to the corralito, the government-imposed freezing of bank accounts. That happened in late 2001, before the default in 2002, because the Argentine government didn't want to cut the link to the dollar and thereby devalue the Peso. Of course in the end, they were forced to devalue the currency and to default on their dollar-denominated debts. We see exactly the same thing happening in Greece today: the government doesn't want to cut the link to the Euro.
Britain is perhaps fortunate that the 1992 ERM debacle has taught our politicians some important lessons about exchange rates.
14. Peter Hun said...
"Argentina defaulted on its debt in 2002, and the world didn't end."
Actually, Argentina defaulted on its debt in 2002, and its world DID end. Read all about it:
SURVIVING IN ARGENTINA, when the SHTF:Life in Argentina after the 2001 crisis. http://ferfal.blogspot.com/