Is the end nigh for the Euro? [vol. 2]

Not that much really, but do you think the EU finacial system (and UK one fwiw) could cope with a 2tn € default after taking a previous 1.5tn hit from the combined previous three? If Italy goes, after max 3 days France goes and then it's Germany (if not in the same time as France, Germany's second bank it's italian...) time. What I don't get is the fact that politicians seems to not get the idea that we are like on the Titanic, 3rd class passengers will get their feet wet in advance, but in the end, if the game don't change, everyone will drown...

But not liberating labour markets, cutting public spending....

It's like watching someone with a gambling addiction. Gambles getting bigger and bigger but no acknowledgement of the underlying problem.

Rate difference quid to the euro of 2.5cts since the start of the month. That is a massive points difference and anybody shorting the Euro since April has and is making a fortune.

For anyone who would like the accompanying music, please see here

http://www.youtube.com/watch?v=MiAxiGZKpGQ

I agree: and as Mermaid and others remind us this mess is ENTIRELY of the EU making. Bad decisions overlaid with arrogance and stupidity. No natural disaster here to blame. Just plain old fashioned greed, stupidity, weakness and overreaching themselves by, out of control, weak minded, self serving politicians. This has been wrongly set up from the start.

Clearly, a monetary system cannot work, where the fiscal structure is left to the individual states, and the Central Bank and central EU control has no effect or real control over the expenditure of those states. We all know that now. But can the EU remedy this? I very much doubt it.

Unfortunately once again it is the EU taxpayer that will suffer the consequences. Retirement on a fat pension is where Merkozy and Co are going.

Turning to the rest of the HBAT's, I cannot see Spain, Portugal and Italy hanging on their threads much longer. It is absolutely obvious these countries have exactly the same structural deficiencies in economic output and cannot be sustained within the Euro.

The time is up for the EU and the Euro. I do not think that this will continue, as it has, for much longer. Once Greece shows the way, and defaults, the pressure on the remainder of the HBAT's will rise rapidly. I think we are only seeing the` start of the slippery slope.

The EU has a long way to fall: and fall it will. Sadly millions will suffer huge deprivations directly, as a result and the UK will be caught in the turbulence well and truly.

Predicting the outcome is very difficult. I am inclined to foresee a new grouping of Northern European states around Germany with all of Scandinavia, Denmark, Finland, Sweden, Norway in this grouping and Austria, the Netherlands, Holland and pother satellite countries in the new mix.

I have no idea what France` and Belgium will do, or indeed can actually do.

But, as the Songbird said 50 years ago, 'The times they are A'Changing'.

Here here!
http://www.youtube.com/watch?v=llDYLb7HoIk
Good old Nigel,IMO they are dilusional and do sadly still think they are right even now.

Some still think the germans will blink first
http://www.marketwatch.com/story/germany-will-blin...

Makes sense but do they value their own careers and certainty of not being reelected if they give away more of their tax payer's money.

She probably is there in two roles - mother of his children and likely one of his ministers.

Latest from the Beeb: http://www.bbc.co.uk/news/business-18084700

Which does suggests that Mervyn King is as doubtful about the Euro/EU as the rest of the world. After the event, of course.

Interesting that both Eddie George and Mervyn King Governor's of the BofE when the Banking Collapse took effect, are still, generally, highly regarded. Despite the pair being in office during the period before the collapse when the situation, was steadily building up. Unnoticed until Northern Rock folded.

I appreciate that the FSA was primarily responsible but we British are a forgiving lot. The FSA is of course, still, as completely useless as they always were and costing even more. Neither the FSA nor the BofE will predict the next collapse. Not in their personal interests, sadly.

Looks like the Greek bank run is in full swing, according to some twitter feeds