Greece...

pineapple

AndyGuil wrote: »

Markets will turn on the other Southern European countries and then the collapse of the Eurozone will happen. This will cause a new credit crunch and debt will get expensive.

If that's all then I am not too bothered.

wellused

Remember the "Millennium Bug"? No one knew how that would pan out and just look what happened.

AndyGuil

wellused wrote: »

Remember the "Millennium Bug"? No one knew how that would pan out and just look what happened.

The Eurozone problem is a little more than a bug and it is fairly well understood what will happen when the Eurozone breaks down which is why they have been propping Greece up for so long.

wellused

Surely they have been propping Greece up to buy time to build firewalls when they feel that the time is right they will cut their losses.

AndyGuil

wellused wrote: »

Surely they have been propping Greece up to buy time to build firewalls when they feel that the time is right they will cut their losses.

They have no money to bail out Italy and Spain, they need trillions for that. The markets will turn on them and that is the end of the Eurozone.

pineapple

wellused wrote: »

Surely they have been propping Greece up to buy time to build firewalls when they feel that the time is right they will cut their losses.

This is what I believe.

pineapple

AndyGuil wrote: »

They have no money to bail out Italy and Spain, they need trillions for that. The markets will turn on them and that is the end of the Eurozone.

Conversely it could all result in tighter fiscal union. Dons tin foil hat....

AndyGuil

pineapple wrote: »

This is what I believe.

Italy are already back in recession, it is only a matter of time for them. There is nothing that can be done to save them. Italy's 1.9 trillion euros of debt can not be bailed out. The result after Greece, it will be disorderly.

Mrs_Bones

wellused wrote: »

Surely they have been propping Greece up to buy time to build firewalls when they feel that the time is right they will cut their losses.

Are they right though?

There certainly seems to be a feeling coming from some sectors of the EU that if they let Greece go now, it will not be a big problem and that they can stop contagion to the bigger countries of Italy and Spain. It might cause some small problems but no big disaster.

Then again the EU seems to have got many things wrong up to this point, the gamble is very high that they will be right this time.

wellused

The other PIIGS may be in a very bad place but the general opinion in the Eurozone or Germany at least is that they can manage the problem with euro bonds and austerity measures, on the other hand Greece has not only a financial problem but a political one too, in short Greece is beyond saving and the money would be better spent elsewhere. The warning to the remaining Piis must be as long as their governments are seen to be doing what Germany prescribes then they qualify for help.