The euro continued to fall against the dollar and the yen after speculations went around that European recovey may be slowing down. Geoffrey Yu, a currency strategist at UBS AG in London, said: " The statement yesterday bought the euro zone some time but unless something is done soon, downside pressure on the euro will persist. The economic data will give euro zone leaders an even greater incentive to get Greece sorted.”
The euro declined as much as 1.2 percent to $1.3532. The euro declined as much as 1.2 percent to $1.3532.
Years ago, Margaret Thatcher predicted the collapse of the euro. I’ve always thought that her dire prediction was just a little overdone. Now there is serious talk in several quarters about the possibility that the euro currency could actually collapse and
go out of existence.
[B]“The European single currency is bound to fail, economically, politically and indeed socially,
though the timing, occasion and full consequences are all necessarily still unclear.”[/B]
Former British Prime Minister Margaret Thatcher
I bet the UK is counting their blessings at the moment for not having adopted the Euro.
Also, was listening to Bloomberg radio this morning and they were discussing the extent of Greek tax evasion. Did a search and found this Businessweek article saying tax evasion is up to 10% of GDP. That’s almost as much as their budget deficit. What a mess…
I can’t honestly see them trying to pull what Paulson did with Lehman and just let Greece collapse to make a point. If they don’t bail them out the Euro is in for a pretty bleak future IMO, and even if they do its probably still going to be pretty ruff going.
I don’t think the euro will collapse. It will just inflate. The sharp south move right now is just a hype as it was when it moved north.
Europe is heading more socialism. Look at other socialistic paradises. Cuba, … The people suffer, but that doesn’t mean the paradises collapse.
Second argument: The pigs are not the engine of Europe.
I guess it will continue moving down, but not collapse. I mean, every paper currency will collapse, but not that soon with a currency of xxx million people.