Collapse of the euro is 'inevitable'

OneADay

sabretoothtigger wrote: »

euro is less likely to collapse then sterling imo

Shhhhh - don't tell anyone but sterling crashed over a year ago :eek:.
Quantitative bleeding was deemed the cure .. alas a failure.

Ron2256

The pound fell sharply in the last two years and it's not been a bad thing for the economy.
The euro is overvalued compare to the dollar and pound and should fall back to the historic mean in the future.
I guess the word collapse is more catchy for your average daily mail reader.

OneADay

Ron2256 wrote: »

The pound fell sharply in the last two years and it's not been a bad thing for the economy.
The euro is overvalued compare to the dollar and pound and should fall back to the historic mean in the future.
I guess the word collapse is more catchy for your average daily mail reader.

Ah the daily spot the "daily mail" remark!

"Not a bad thing for the economy" - it depends on whether you want to make money out of exporting or not.

Or whether you want to pay more for less on imports.

sabretoothtigger

A declining currency is bad for any country which is a net importer of energy and the UK definitely is

The reason the Euro could be stronger is they have greater distribution in exporting as well as importing but the UK could become lobsided in its liabilities.
Germany is the worlds largest exporter, collapse is highly unlikely I'd say but countries like Greece that fail to follow ECB policy could be ejected

OneADay

Call me simple but I bet the richer Europeans were rubbing their hands with glee when the euro came through, the poorer ones could see brighter futures with a stronger currency.

But when the poorer debit ridden countries fall into the kind of mess Greece is in - that feeling of being rich suddenly starts to dissipate - with the realisation that the likes of Germany/France etc now need to prop up countries like Greece.