Italy is quite likely to default

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
04/08/2011 15:07

It seems very likely that Italy will default. The implications are just too scary to imagine. :(

tomsteel


Joined: 22/06/2009
Posts: 482

Message Posted:
04/08/2011 21:45

Did Italy not do so in 1944?

Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
04/08/2011 21:56

Yes Groucho watching it with interest, There is no respect for the great leader also.Spanish leader cancelled his holidays to deal with their crisis, he will probably have another of his famous parties. It will be bad and who next x

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 22:57

Most of the world stock markets are falling. It'll be catastrophic if Italy defaults.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 23:00

Almost £50bn has been wiped off the value of the FTSE as the EU president warned the eurozone crisis is spreading.



The FTSE ended at 5393, down 191 points or 3.43%, taking £49.8bn from its value.



It is the biggest fall on the FTSE for more than two years.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 23:01

The interest which the Italian and Spanish governments have to pay to service their debts climbed to record levels on Tuesday of 6.18% and 6.45% respectively.





At his news conference, Mr Trichet would not confirm whether the bank is propping up Spanish and Italian bonds through the (SMP).



The developments follow a grim verdict on the eurozone by the think tank Centre for Economics and Business Research (CEBR) which believes Italy will default and fall victim to the debt crisis due to its weak economy.



Italy and Spain, the eurozone's third and fourth largest economies, are both facing pressure from markets.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 23:02

The CEBR points out that, with Italy's economy twice as big as Greece, Portugal and the Irish Republic combined, a bailout would probably be unaffordable for the eurozone.



It would, in fact, mean the end of the eurozone altogether, the CEBR said.



Spanish Prime Minister Jose Luis Zapatero has in recent days sought to adopt a more proactive stance on tackling the crisis.

hetty


Joined: 31/07/2011
Posts: 167

Message Posted:
04/08/2011 23:28

The way the economists etc talk about the Euro you would think armageddon was coming, if the euro fails so what, it will be tough but in a couple of years the Med countries will bounce back, the bully boys of Brussels will throw their dollies out of their prams and Nigel Farage whom I have a lot of respect for will gloat a little, happy days.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 23:31

I think in the short-run it would hurt Europe, however, the transition to new currencies would likely increase Europe's exports thus helping their economy. Then again......

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
04/08/2011 23:35

The average man in the street saw and new that a common currency simply would not work so how could the euro leaders get it so hideously wrong.

hetty


Joined: 31/07/2011
Posts: 167

Message Posted:
04/08/2011 23:37

No1 you are quite right, a couple of the med countries lied to get into the Euro but having said that the bullies in Brussels didn't check them out because they just wanted their megalomaniac ego's nursed and no doubt enticed the weaker countries in with promises they could not possible keep, in the end the piper pays for the tune.



The Med will bounce back stronger and healthier after the pain eases.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 23:39

Arguments for and against the Euro.



For

•The Euro makes trade and travel between Eurozone countries cheaper and easier.

•The Euro creates greater economic stability in the countries that use it because it takes control of monetary policy out of the hands of politicians and gives it to the ECB. This encourages confidence among investors.

•The Euro is a symbol of European identity and a vital part of the process of political integration.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 23:39

Against

•The Eurozone is not an optimal currency area; the economies that make it up are too different to make the Euro work properly. This could result in more severe unemployment during recessions and more inflation during booms.

•EMU can't work because so many members fail to meet the SGP rules. This will eventually create uncontrollable splits.

•A national currency is a symbol of identity: adopting the Euro means symbolically and practically giving up sovereignty.

•The Euro is primarily a political, not an economic, project.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 23:41

"....• EMU can't work because so many members fail to meet the SGP rules. This will eventually create uncontrollable splits...."



It's this point that is worrying.

hetty


Joined: 31/07/2011
Posts: 167

Message Posted:
04/08/2011 23:45

In recessionary times it is vital that countries can control their own markets and devalue to help their economies, being in a single currency zone they gave up that privilege and are in dire straits now, the Euro needs to disband.



Just my opinion.

hetty


Joined: 31/07/2011
Posts: 167

Message Posted:
04/08/2011 23:48

No1, it is only worrying in the short term, we will all suffer in the short term but markets always recover, in 2/3 years we will all be back to growth again. The 'PIGS' will take back control and recover.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
04/08/2011 23:49

hetty. I agree with your post 16.

hetty


Joined: 31/07/2011
Posts: 167

Message Posted:
04/08/2011 23:57

We will all survive having learned a valuable lesson, I doubt the Euro will be around in the Med by the end of the year.



Not many on here agree with me so I will say thankyou No1.

hetty


Joined: 31/07/2011
Posts: 167

Message Posted:
05/08/2011 00:01

Turtle the economists and Euro politicians complicate matters, they think too long and hard and all say different things, it was obvious to the man in the street simply because it is very simple, let the 'pigs' default, it will be in their own interests to do so, they know it, you and I know it and so does Brussels but they won't admit it because it will prove them wrong and a lot of the 'stupid' Euro MP's will be out of work.

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
05/08/2011 00:06

Having spoken at length to friends, family and business people I have yet to meet anyone who is in favour of the EU or the Euro.



A common trade policy is all thats needed and for gods sake get rid of the Human Rights act.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
05/08/2011 00:08

I'm agreeing with Turtle as well.

philbailey


Joined: 17/01/2011
Posts: 3534

Message Posted:
05/08/2011 00:09

The one good thing the government did

say no to the euro