We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Will greece really leave the Eurozone ?
luvpump
Posts: 1,621 Forumite
http://www.abc.net.au/news/2012-05-17/greece-wont-exit-says-hedge-fund-economist/4017040
Sav Savouri chief Economist at "Tosca fund" seems to think it is impossible, because the consequences will be so catastrophic .. Makes some convincing arguments about it too, either way, 17th of june will be very interesting ..
Sav Savouri chief Economist at "Tosca fund" seems to think it is impossible, because the consequences will be so catastrophic .. Makes some convincing arguments about it too, either way, 17th of june will be very interesting ..
0
Comments
-
The sensible thing for Greece to do is default on the debts and leave the Euro. Germany and France should concentrate their efforts on Italy, and the countries that should never have been in the Euro in the first place should leave it as gracefully as possible.No reliance should be placed on the above! Absolutely none, do you hear?0
-
Greece is a long way from deciding that it needs a floating currency as a prerequisite for digging itself out of its hole. And it's not obviously true.
The point of a floating currency is to make exports cheaper. But with no reserves or resources or trade surplus or credit to back a Greek currency, it would be likely to suffer serious if not catastrophic inflation, which would mean it couldn't be used for pricing exports.
For instance, tour operators buy hotel rooms a year ahead, for payment later. Hotels would be unable to sell those rooms in drachmas with no idea what the drachma would be worth by the time they got the money. So the whole exercise becomes self-defeating."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
For instance, tour operators buy hotel rooms a year ahead, for payment later. Hotels would be unable to sell those rooms in drachmas with no idea what the drachma would be worth by the time they got the money. So the whole exercise becomes self-defeating.
Maybe the Athens Hilton (and all the other greek hotels) would price their rooms in dollar$, pounds or (wait for it...) Euros. Its what all hotels in parts of the world with dodgy currencies do routinely.0 -
Maybe the Greeks would continue to do all their business in Euros. But then what's the point?Maybe the Athens Hilton (and all the other greek hotels) would price their rooms in dollar$, pounds or (wait for it...) Euros. Its what all hotels in parts of the world with dodgy currencies do routinely."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
They should have been kicked out when it when it became apparent that they forged entry, that may have contained contagion, i.e kicked out is better than forced out in the domino game.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
-
They should have been kicked out when it when it became apparent that they forged entry, that may have contained contagion, i.e kicked out is better than forced out in the domino game.
Then they should never have got in in the first place. Theres 2 sides of the forged entry debacle.0 -
One has to wonder if the break up of the Euro will be as catastrophic for the countries concerned and the world in general, as the break up of the soviet union
One wonders how many of the ex-soviet countries regret having their own currencies now.0 -
I imagine it was quietly suggested to the Greeks that they should fiddle the books to create a fig leaf. If basket-case Italy could be allowed in, there was no reason to shut the Greeks out. If they struggled, they were small enough to be helped. Germany was feeling generous then."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0
-
Hey,
this is so interesting... but i think its a done deal really. they will be leaving the eurozone since after being given so much help financially where do they go now. i think theres only one option left and that is the one that has been hinted at for a while now
its definitely not going to be good for the eurozone, but the only positive might be that if a decision is made that ends the uncertainty then it will give the economy in Britain a chance of starting a recovery. The majority of the damage has come through the uncertainty of what will happen next. Ending the 'what if's' can only be a good thing
theres my two cents0 -
Greece is a long way from deciding that it needs a floating currency as a prerequisite for digging itself out of its hole. And it's not obviously true.
The point of a floating currency is to make exports cheaper. But with no reserves or resources or trade surplus or credit to back a Greek currency, it would be likely to suffer serious if not catastrophic inflation, which would mean it couldn't be used for pricing exports.
For instance, tour operators buy hotel rooms a year ahead, for payment later. Hotels would be unable to sell those rooms in drachmas with no idea what the drachma would be worth by the time they got the money. So the whole exercise becomes self-defeating.
Perhaps they would need some form of parachute arrangement like clubs leaving the Premiership. Not equating Eurozone to Premiership BTW."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards