Spain and Portugal financial crisis puts Europe on brink

Quote from Martinghoul:

You're wrong, TZ... You have to realize that the EuroZone has been a dream of several generations of Germans (and the French, to a lesser extent).

I don't see anything in here that says I am "wrong." I see someone's belief about this without sourcing any proof.

"Whether it's the result of post-WWII trauma or something else doesn't matter, but the Germans and the French are prepared to "help" Greece (obviously, with strings attached). The issue isn't with Greece and Portugal, which would both be cheap to deal with. It's Spain and, god forbid, Italy, which have economies almost three times and six times the size of Greece, respectively. "

Which leads back to the basic point I said originally. Why would the citizens of Germany or other European countries want to bail out other europeans? West Germany took on East Germany and its poverty and problems, because they were also Germans. But few people want to give away m

The Eurozone and the EU had their requirements. Not all European countries joined them. And I suspect that the citizens of the more stable members of these are not in a hurry to spend their tax dollars fixing other countries current problems.
 
Quote from TraderZones:

I don't see anything in here that says I am "wrong." I see someone's belief about this without sourcing any proof.
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Fine... It's my view that you're wrong. As to proof, there can be nothing tangible until there's action. I'd only quote what the various German/French politicians (not ECB gov council members) have said re Greece being a common EU responsibility.
 
Quote from Martinghoul:

The issue isn't with Greece and Portugal, which would both be cheap to deal with. It's Spain and, god forbid, Italy, which have economies almost three times and six times the size of Greece, respectively.
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True indeed. Once they deny a bailout to Greece, this will have a serious ripple effect throughout EU, hitting especially hard among the economic outliers like Latvia and Malta. Once that happens, it's just a matter of time before the whole damn thing craters. Even if just one nation like Greece defaults, that will have a devastating effect on the currency (Euro) sending shockwaves throughout the whole region, if not the entire globe. These nations have no other choice but the bail out their incompetent brethren.
 
Quote from saliva:

True indeed. Once they deny a bailout to Greece, this will have a serious ripple effect throughout EU, hitting especially hard among the economic outliers like Latvia and Malta. Once that happens, it's just a matter of time before the whole damn thing craters. Even if just one nation like Greece defaults, that will have a devastating effect on the currency (Euro) sending shockwaves throughout the whole region, if not the entire globe. These nations have no other choice but the bail out their incompetent brethren.
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France itself has defaulted 7 times on it's debt these last 500 years. It wasnt the end of the world then and it won't be the end of the world this time around.
 
Quote from Happy Hopping:

Okay, I'm not verse in the way the Euro dollar functions, so I have a few questions:

1) The way a country like USA works, is that if they want to print more $$, they just turn on the printing press and keep on printing, such as what obama is doing right now.

So how does EU works? Say Greece needs more Euro, and the ECB won't let them, what then?

2) Ea. member state has the authority to create euro coins, (not notes), although they are suppose to get the approval from ECB to create those coins, w/ the current situation of Greece, who's to stop them to create those coins, they obviously has the physical mechanism to create those coins.

And say Greece create 500 billion coins, and then say they only creates 50 billion coins, who's to know?

http://europa.eu/legislation_summar...roducing_euro_practical_aspects/l25058_en.htm

3) According to the Masstricht Treaty,

http://en.wikipedia.org/wiki/Euro#cite_note-25

Member States are meant to meet strict criteria such as:

i) a budget deficit of < 3% of their GDP,

ii) a debt ratio of less than 60% of GDP

but From this bbc chart:

http://news.bbc.co.uk/2/hi/business/8495174.stm

_46891454_govts_in_debt02_466gr.gif


All countries, including UK, Greece, Spain, Ireland, Italy, Germany has already exceeded the debt ratio vs. GDP, as well as their budget deficit of their GDP

so every member broke the charter?

Note: Even Spain is sitting at 54.3%, EU project their next yr.'s budget deficit to be exceeding 77%.

4) How come only Greece, Spain, Portugal is mentioned in the news? because according to the chart, Italy is also in the same boat as Greece, and so is Germany and UK, how come they are not in the news?

5) what if Greece folds? What's going to happen to EU?
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Only reason the EU was created was out of spite for the US. It was doomed to fail from it inception.

Europe has never gone more then a couple of generations without some type of War so how people ever thought this was going to work is beyond me.
 
but what would be the consequence if they get kick out?

And since IMF has the means to bail out Iceland, there is no reason to believe IMF will watch Greece die.

And when Iceland folds, not a huge influence as far as the US market is concern the next day
 
Quote from Happy Hopping:

but what would be the consequence if they get kick out?

And since IMF has the means to bail out Iceland, there is no reason to believe IMF will watch Greece die.

And when Iceland folds, not a huge influence as far as the US market is concern the next day
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Why would the IMF bail out Greece? So they can next bail out Portugal, Spain, Italy, Japan, the USA, and everyone else who cannot manage their finances?
 
I went to spain, and i dont understand how these slackers live, 20% unemployment rate, and every night hopping arnd for tapas and drinking sangria
 
US propaganda machinery distracting from home made problems. Greece, Spain, Portugal defaulting ? What a joke !

EUR losing some ground ? Sarkozy and Germany say thank you.
 
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