Euro Zone Crisis

 Cappielow, here is the article - http://uk.finance.yahoo.com/news/ING-sees-deep-slump-dollar-reuters_molt-2239326043.html;_ylt=ArRD2KRFKlr.orjrWeWYEYXSr7FG;_ylu=X3oDMTE4aHRzOWdzBHBvcwM3BHNlYwN5ZmlUb3BTdG9yaWVzBHNsawNpbmdzZWVzZGVlcHM-?x=0

I agreed its unlikely, but Spain leaving the Euro is possible... Also like the thought of a 50% devaluation against the German Currency!

Sorry Darren I wasn't questioning what you were saying, I was questioning why the complete break up of the Euro involving all Euro Zone countries is now being talked as a realistic possibility as until now I've never heard that being mentioned. I can't see how countries like France and Germany would gain from going back to the Franc and Deutschmark, Germany in particular would see their exports become much more expensive overnight.  

Can't see it happening, but hey, I'm no expert!

This is the same as when the US was about to run out of money...everyone said a last minute deal would go through as no one wanted to be responsible for the US gov defaulting on payments.

The euro is hamstrung by the fact that unlike UK and US reserve banks, the ECB hasn't been allowed to just print money.  And the leaders bitch and moan and don't achieve anything!!

I totally agree with Cappielow, Germany can't afford for the euro to fail.

I would have thought the Irish and Italian currencies might be lower than the 25% margin mentioned in that article but I think its all guesswork.  Especially as those countries would immediately be able to instigate whatever reserve bank action they chose.

Also not a rosey picture for the UK exporters or local producers....all of a sudden Irish, Spanish goods etc a lot lot cheaper

 If you have paid off your property at Condado, is it wise to go for a Spanish mortgage? that is the question.  There is not an easy answer to this.  Should Spain leave the Euro and return to the Peseta their currency would obviously devalue allowing you to pay off your mortgage at a reported 50% discount, saving you around £50,000.  Youngers points out that the Spanish may redenominate for Spanish residents only, not sure if they would quite get away with that one.  Also you may take out your mortgage with a Spanish bank only to realise that the Spanish manage to survive within the Eurozone, thus costing you a fair bit of time and money on legal and arrangement fees, all for nothing.  A lot of if's and buts with perhaps too many variables.  A bit of a quandry.     

This message was last edited by del007 on 03/12/2011.