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Espagne...

124

Comments

  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    pqrdef wrote: »
    Unpegging a currency when you're AAA-rated is rather different from trying to establish a new currency when you're already junk.

    What happens if a Country defaults but keeps the Euro? I heard an article over the weekend saying it's impossible to force a Country to stop using the Euro as its currency.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    mystic_trev wrote: »
    What happens if a Country defaults but keeps the Euro? I heard an article over the weekend saying it's impossible to force a Country to stop using the Euro as its currency.

    They will have to leave in order to borrow money again and also to become competitive.
  • BlondeHeadOn
    BlondeHeadOn Posts: 2,277 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The_J wrote: »
    Germany is the engine, but it's a V8. It's turbocharged. It's got a lot of gas in the tank but it's stuck in a wooden truck. Greece is a wing mirror attached with blue tac. Ireland is the bonnet. Italy are the wheels. France is the body but the V8 is straining to get out, it's vibrating the whole thing, it's destroying the various components. Take the V8 out and make it pedal powered, suddenly things are much more sedate.

    That makes it sound simple, to complete the analogy the V8 would have to be extracted by driving off a cliff and hitting every boulder on the way down.


    I love this metaphor!

    Is Spain the other wing mirror or the broken trailer? And how about the UK as the roofrack...

    Oh look! Is that Noddy in the driving seat?


    :rotfl::rotfl::rotfl:
  • The_J
    The_J Posts: 1,250 Forumite
    BlondeHeadOn wrote: »
    I love this metaphor!

    Is Spain the other wing mirror or the broken trailer? And how about the UK as the roofrack...

    Oh look! Is that Noddy in the driving seat?


    :rotfl::rotfl::rotfl:

    Good one I forgot them! Spain is the trailer, bouncing up and down on the rough road.

    It's quite an apt analogy because if the wing mirror (GRE) flies off, the Euro Wagon will roll on, if the bonnet (IRE) is lost then it's still ok, we can maybe just about lose the trailer (ESP) but if the wheels (ITA) fall off then it all comes to a crashing halt.

    Noddy Van Rumpoy is driving but he is by no means the only one in the car. Merkel operates the the accelerator. Lagarde is the driving instructor in the passenger seat, feet on the dual controls but trying to appear calm. Rajoy is on the brake and Hollande is on the clutch "engage Germany, disengage Germany, engage, DISENGAGE DISENGAGE ABORT ABORT". Draghi is in the backseat shouting at how it should be driven.

    Dave Cameron is watching the car go round the track holding a betting coupon on the car finishing the race.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
    I think the UK would be the nagging satnav urging the car to turn right at every opportunity.
    J_B.
  • drc
    drc Posts: 2,057 Forumite
    AndyGuil wrote: »
    Italy is not far behind. They will go down near enough together. Their bond yields are already exceptionally high. Spain is well over the "unsustainable" 6% and Italy is only a touch below it. It was a very slippy slope when Greece went over 6% and they are none are in position to recover. The markets are taking it all down whether they like it or not.

    So, how long until Armageddon? Should I be buying more baked beans?
  • chucknorris
    chucknorris Posts: 10,795 Forumite
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    drc wrote: »
    So, how long until Armageddon? Should I be buying more baked beans?

    Yes but please open the windows first
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    drc wrote: »
    So, how long until Armageddon? Should I be buying more baked beans?

    Not sure about armageddon but just expect another credit crunch but much more severe than the last and with a lot of job losses. Expensive credit as well.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The_J wrote: »
    The concern is not that Greece will leave the Euro. The concern is that if they do will they bounce back and recover quickly?

    Recover from what?

    The deficit "figures" have been fudged for years. Default will only be a very small step in a new beginning.
  • The_J
    The_J Posts: 1,250 Forumite
    Thrugelmir wrote: »
    Recover from what?

    The deficit "figures" have been fudged for years. Default will only be a very small step in a new beginning.

    Recover from mass unemployment, the collapse of the financial system, the collapse of society, the collapse of the political system. All of which would happen if they left the euro.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
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