Spain is in a deep, deep recession
- Thread starter crgarcia
- Start date
Long USD, short Euro.
Benny better back up his blathering on strong dollar with decisive action.
I don't want to hear any horseshit anymore from Santa beard.
If a 25 basis to 50 basis point hike shores up the dollar, breaks commodities and crude oil, then it's a win-win situation, because it sure as hell won't do any damage to the underlying economy with rates at 2.25%.
By the way, Italy is in terrible shape, in addition to Spain. The public pasta halls, which are equivalent to food banks here, are jammed full of middle class people dressed in their Sunday best.
Portugal isn't doing much better.
Benny better back up his blathering on strong dollar with decisive action.
I don't want to hear any horseshit anymore from Santa beard.
If a 25 basis to 50 basis point hike shores up the dollar, breaks commodities and crude oil, then it's a win-win situation, because it sure as hell won't do any damage to the underlying economy with rates at 2.25%.
By the way, Italy is in terrible shape, in addition to Spain. The public pasta halls, which are equivalent to food banks here, are jammed full of middle class people dressed in their Sunday best.
Portugal isn't doing much better.
Many economists are surprised the Euro has lasted as long as it has. Giving up control over ones monetary policy means a country such as Spain can do little to help its economy when it tanks, unless all the EU countries using the currency can come to a consensus to lower rates.
This, more often than not does not, does not happen. Countries with endemic economic problems such as Spain, Greece, and Italy suffer at times due to this. All it will take is for a large country such as Spain or Italy to bail on using the Euro, and its toast.
I give it 3 to 5 years, then back to individual currencies.
This, more often than not does not, does not happen. Countries with endemic economic problems such as Spain, Greece, and Italy suffer at times due to this. All it will take is for a large country such as Spain or Italy to bail on using the Euro, and its toast.
I give it 3 to 5 years, then back to individual currencies.
Three years from now the only countries using the Euro will be Germany, France, and a couple other ignorant wannabes. The Euro will be on par with the dollar. England will be looking very smart for not getting involved in the Euro nonesense.
Italy, Spain, and Ireland will have left the Euro and massively devalued their currencies. These countries will do much better economically as a result.
Italy, Spain, and Ireland will have left the Euro and massively devalued their currencies. These countries will do much better economically as a result.
They are better off when the economy is growing, and far worse off when it is not. Problem is that Spain, Greece, and Italy just can't keep up, so their economies are almost always weaker, and they prefer lower rates.
Most articles I have read (usually via the Economist) think it is Italy that will bail first.
They will still be part of the EU, and have the open borders, just won't use the currency. There are other Euro countries that don't use it.
Most articles I have read (usually via the Economist) think it is Italy that will bail first.
They will still be part of the EU, and have the open borders, just won't use the currency. There are other Euro countries that don't use it.