Sunday, Dec 13, 2009

"Euroland's revolt has begun. "

Telegraph: Greece defies Europe as EMU crisis turns deadly serious

The Greeks, it claims here, are about to make one huge mess of European Monetary Union. Given the strength of the Euro is a big driver of UK HPI at the moment, I certainly hope it's true.

Posted by tpbeta @ 06:31 PM (2907 views)
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1. icarus said...

Greece is in the 'too big to fail' club. If it's not rescued markets will tank and bubbles small and large in commodities, shares and property will burst. The ECB knows this and so do the Greeks, who also know that austerity measures will only worsen their recession, and that G Sachs and Citigroup etc. didn't have austerity measures imposed on them. The ECB also knows that Portugal will be next if Greece leaves the Euro. Bankers and powerful corporations won't allow their plans for a corporate superstate to be derailed like this.

Sunday, December 13, 2009 07:24PM Report Comment

2. tpbeta said...

Don't think it requires Greece to leave the Euro to undermine its value. Just a big political crisis and a big bail-out (or two) should knock down the value. Which is, after all, something the ECB would welcome.

Sunday, December 13, 2009 08:00PM Report Comment

3. stillthinking said...

I am sure none of the Greeks will object to having their euro deposits in the local banking system converted to drachmas. I bet they will be overjoyed, particularly as the whole point, known in advance, is to inflate away debts.

Which is the crux of the matter, how exactly would a member state devolve?

Sunday, December 13, 2009 08:49PM Report Comment

4. icarus said...

My point is simply that Greece is in a strong position and doesn't have to tighten its belt and risk riots in Athens. ECB won't let it default and risk another event along the lines of the Lehman Bros crash.

Sunday, December 13, 2009 08:53PM Report Comment

5. mander said...

Europe will need more of these news in order to devalue their Euro. But no Europe is getting stronger.

Sunday, December 13, 2009 08:58PM Report Comment

6. enuii said...

So the Greeks are technically in a better position than the poor old Irish were when it came to their hands being forced over the Lisbon treaty.

Bail us out or else what!

Sunday, December 13, 2009 09:18PM Report Comment

7. Cheekie Charlie said...

Good old Ireland, workers 5% and bosses 20%cuts. This is the most sensible and (on the face of it) fair measure I have seen to date. Will it happen in the UK? Will it XXXX, and if it did the bosses would take a productivity bonus.

Sunday, December 13, 2009 09:28PM Report Comment

8. Cheekie Charlie said...

"RBS said the UK and Ireland have most exposure, with 23pc of Greek debt between them " OOps maybe Ireland will have to think again as for the UK tax payer things can only get worse.

Sunday, December 13, 2009 09:32PM Report Comment

9. icarus said...

Bail us out or face the consequences @1 and 4. Let's see if Greece bows to the fiscal hawks and follows Ireland into austerity and depression. It's possible that Greece won't blink first.

Sunday, December 13, 2009 10:16PM Report Comment

10. Yellerkat said...

If Greece is "Too Big To Fail" who the hell is "To Small To Notice?"

Monday, December 14, 2009 01:00AM Report Comment

11. general congreve said...

Yep, bailout time and a devalued Euro. All paper currencies will devalue relative to gold as a result of this crisis.

Monday, December 14, 2009 09:19AM Report Comment

12. Lost Password said...

A devalued Euro will in no way benefit the UK. All it means is that punters is the Eurozone will start to experience a similar level of commodity inflation to that which we are here. The Italian rice I buy is not going to fall in price just because the Euro does. If the Euro were devalued back to a level below 70p, it would provide the illusion of a Sterling 'recovery' - with all the complacency that would go with that - for those who still have disposable incomes for holidays on the continent.

Monday, December 14, 2009 09:43AM Report Comment

13. Peter said...

The next one will be Spain . According to Bank of Spain data, Spanish banks were receiving approximately 82 billion euros in longer term financing from the ECB as of last September.In fact, Spain's manufacturing sector was contracting in November at the fastest rate in any of the 26 countries included in the JP Morgan Global Manufacturing PMI survey.
At the same time, Banco de España data show that over the same time period Spanish bank funding of government borrowing rose from around 300 billion euros to around 400 billion euros.

Monday, December 14, 2009 09:45AM Report Comment

14. growler said...

usual anti-Euro AEP rant. I'm sure the Euro is safe for now Ambrose.

Monday, December 14, 2009 09:53AM Report Comment

15. mark wadsworth said...

I'd advise the core Euro-countries just to chuck Greece out of the system, end of discussion. They had to bribe Ireland to get them to vote yes in the second referendum, no such prob's with Greece, Lisbon is all signed up now, and the EU can get on with doing what it wants.

As a result, the Euro would probably strengthen (which may or may not be what the core Euro-countries actually want). Just imagine every country got chucked out apart from Germany (and Austria) and Beneleux, the Euro would easily add ten or twenty per cent.

Monday, December 14, 2009 10:23AM Report Comment

16. icarus said...

Why would they prop up companies (banks) and not countries?

Monday, December 14, 2009 11:02AM Report Comment

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