Euro zone crisis over?

TickersPlaysPop

Hi all

The Euro zone topic isn't in the news any more, no mention of Greece or Spain being close to collapse. Also, no mention of the USA debt ceiling but I guess that is only a mth or 2 away....

So has the Euro zone crisis ended? Or is it now a fact that with the huge debts around the world it is those debts will help keep interest rates low? Surely the world can't accommodate high interest rates for many yrs to come?

I'm trying to work out what will happen next.... Another crash around the corner? If so ..... what would precipitate it? I'm 37 and I'd like to put a lump sum in my pension or continue to drip feed mortgage by overpaying £500/mth which is at at 3.8%.

Thank you to all that have read this.

CLAPTON

I see in todays Guardian

Germany preparing third financial rescue for Greece

New loan, outlined in a German finance ministry position paper, would be worth €10bn-€20bn, says Der Spiegel magazine

michaels

It is odd isn't it - debt to GDP ratios have not fallen, for Greece there is no option but for 'official' lenders to take a haircut next time as pretty much everyone else has been wiped out and yet 10 year borrowing spreads are much lower. Perhaps Generali can explain it?

Graham_Devon

I don't think it's over.

More well contained. And by that, I mean that plenty of money has been put into it and plenty more will be if the requirement is there.

Thrugelmir

TickersPlaysPop wrote: »

Also, no mention of the USA debt ceiling but I guess that is only a mth or 2 away....

In news today.

Been to Ireland or Spain recently? Both economies have been hit hard. Life carries on though.

wotsthat

TickersPlaysPop wrote: »

I'm trying to work out what will happen next.... Another crash around the corner? If so ..... what would precipitate it? I'm 37 and I'd like to put a lump sum in my pension or continue to drip feed mortgage by overpaying £500/mth which is at at 3.8%.

No one really knows. We don't seem to be in a crisis anymore but there's no point judging this by keeping an eye on the media. They report as a herd so you'll only see overreaction to whatever the flavour of the month happens to be.

However can't really see why the Eurozone greatly impacts on anyone's plans to fund retirement or pay down the mortgage to be honest.

mayonnaise

Graham_Devon wrote: »

...plenty of money has been put into it and plenty more will be if the requirement is there.

Yep.

Remember the headlines (late 2011-2012?) shouting "Eurogeddon!" in our mostly Eurosceptic right wing press, with the PIIGS about to leave the Euro in a matter of weeks or months.

What we can learn from past crises is that whatever needs to be done will be done to keep the Eurozone intact.

michaels

mayonnaise wrote: »

Yep.

Remember the headlines (late 2011-2012?) shouting "Eurogeddon!" in our mostly Eurosceptic right wing press, with the PIIGS about to leave the Euro in a matter of weeks or months.

What we can learn from past crises is that whatever needs to be done will be done to keep the Eurozone intact.

What worries me is that not written: 'Whatever needs to be done will be done'.....'Regardless of the wishes of the population of the countries affected'

purch

TickersPlaysPop wrote: »

So has the Euro zone crisis ended?

The Eurozone "crisis" will continue for as long as the Eurozone is in existence and the after effects will be felt well beyond the actual EUR itself ceasing to exist.

TickersPlaysPop

Hi all

Thank you all for your comments and links .... I intended to spark a quick discussion about the Euro zone to gauge opinion, so thank you all again.

Nobody has commented on this idea yet..... Do you agree that interest rates globally must remain low to avoid a further crisis due to the high debts everywhere? I guess if inflation goes wild and out of control the national banks won't have a choice? But surely it won't be an option if the debtors can't afford to pay? ..... this is good to know if you are deciding what to do with your mortgage. I wish I'd had the guts 1.5 yrs ago to put 100% of my mortgage on a standard variable with Nationwide and save 1.3% in interest so far.

If there is another stock market drop around the corner, it is another fantastic opportunity to drop cash into pensions or any other stock based investment. I think I'll continue to over pay the mortgage the max £500 /mth until there is a drop in the stock markets.

Thanks to all again

mayonnaise

TickersPlaysPop wrote: »

Hi all
I think I'll continue to over pay the mortgage the max £500 /mth until there is a drop in the stock markets.

Yes, at 3.8%, I think that's a good idea.