Is this the start of a run on the Euro...?

#1
With the wealthy Greek's reportedly moving their millions out of their home country and with other's betting on a collapse of the single currency, Is this the early stages of a run on the Euro...?
Profit from crisis in the eurozone

We assess the impact on your holiday home, travel money and investments Borrowers are rushing to take out euro mortgages to profit from the weak single currency, as German growth falters and the Greek debt crisis continues to overshadow markets.

Figures last week showed that growth in the German economy, the eurozone’s largest, was flat in the final three months of 2009, after growing 0.7% in the third quarter. Italy did even worse, with its economy falling 0.2% from the third quarter.

The figures have raised fears that the European economy could be heading for a “double dip”, particularly as it struggles to deal with Greece’s €300 billion (£259 billion) of debt, equivalent to 120% of gross domestic product.

The European Union last week pledged to stand by Greece but the euro nevertheless fell 0.4% against the dollar to €1.36 and 0.9% against the pound to €1.15 over the week. The Sunday Times
If so, where's that bloke Peston, the merchant of doom, when you need him...?
 
#2
- and what chance that Portugal is next?
 
#3
Britain will be in deep poo if the Euro fails because if i remember correctly, cyclops sold our gold [cheaply] and bought euro's with it.
 
#4
He really is a one-eye isn't he?
 
#5
When the Euro was OK FFR was £1/Euro 1.15. Then last Nov it went down overnight to Eurto 1.1/£1. LOA was sorted, so now its climbing back up will FFR be revalued again? I bet its not. PS I have sa lot of Euros in savings in Germany, should I sell 'em quick?
 
#6
exile1 said:
Britain will be in deep poo if the Euro fails because if i remember correctly, cyclops sold our gold [cheaply] and bought euro's with it.
Maybe the treasury should dig out the PIN Number for the BoE vault and sell the lot while the exchange still favours the Euro to Pound exchange rate.
 
#8
heard_it_all_before said:
exile1 said:
Britain will be in deep poo if the Euro fails because if i remember correctly, cyclops sold our gold [cheaply] and bought euro's with it.
Maybe the treasury should dig out the PIN Number for the BoE vault and sell the lot while the exchange still favours the Euro to Pound exchange rate.
Time to buy Corfu back.
 
#9
Ispeakcrabandpongo said:
When the Euro was OK FFR was £1/Euro 1.15. Then last Nov it went down overnight to Eurto 1.1/£1. LOA was sorted, so now its climbing back up will FFR be revalued again? I bet its not. PS I have sa lot of Euros in savings in Germany, should I sell 'em quick?
At today's rate of €1.15 everyone of your €1 would buy you £0.87 or for every €1000 you would get some £870

In comparisson

At the rate on 10 March 2008 €1.31 everyone of your €1 would only have bought you £0.76 or, for every €1000 that would be £760

A difference of some £110 in every €1000. so unless you are getting some fantastic interest rate, work the rest out for yourself.......!
 
#10
I suggested to a German friend in Sept 2009 that the weakness of the £ against Euro would not last.She said that 'Germany has strong finances'.In fact Merkel was trying to hide Germany's structural financial weaknesses,until after her re-election.Germany is in far more trouble than they would admit,and are now being asked to bail out the Greeks.make work schemes abound in Germany.That is not to say that the £ is out of the woods.far from it,as a large proportion of our exports goes to EU countries.If,as I suspect,the Euro gets a hammering this year,at least the £ will not suffer full collateral damage(NuLiabor willing)
 
#11
A major problem with Greek public finance is a culture of fraud and tax evasion.
http://news.bbc.co.uk/1/hi/8469519.stm

It is estimated that 30% of GDP is 'off the books' and untaxed. That means that routine Government expenditure that should be paid for out of routine taxation has to be met from borrowing.

This is estimated at $20+ billion per year.
http://online.wsj.com/article/SB10001424052748704182004575055473233674214.html

Have a look at the little chart on the WSJ article of estimated size of the black economy in various countries:UK is 10.6% and the USA 7.2%

Greece 25% of GDP, Italy 22%, Spain and Portugal 19%.
It's a definition of the PIGS group. 'Tax evaders R Us.'

Put bluntly, Europe (Possibly including us) is subsidising tax dodgers.
 
#12
A major problem with Greek public finance is a culture of fraud and tax evasion.
I believe it was Paxman on Newsnight last week(?) who referenced tax evasion as being the "national sport" of Greece when talking to a minister from that country.

Evidence to support the W-shaped recession of which many have spoken (including yours truly) comes in the form of the fact that, having crept out of recession, Germany has now fallen back into it.
 
#17
#18
Ursus.Maritimus said:
A major problem with Greek public finance is a culture of fraud and tax evasion.
I believe it was Paxman on Newsnight last week(?) who referenced tax evasion as being the "national sport" of Greece when talking to a minister from that country.

Evidence to support the W-shaped recession of which many have spoken (including yours truly) comes in the form of the fact that, having crept out of recession, Germany has now fallen back into it.
This problem is endemic throughout all of the Club Med banana republics. It's a vicious circle as the Public Sectors in these nations are merely a social club as Nepotism is also as rife as tax avoidance. The problem will never be eradicated as the public sectors are incompetent, have no leadership and are merely a means to a very large pension pot. Added to that is that many of these countries also often pay their public servants 13 or 14 salary cheques every year, a bonus at summer and a bonus at Christmas, non of which is performance related. It's a sure thing and all that you have to do to get them is just to manage to remember to keep breathing.

So, looking at it from the Private Sector point of view, it's hardly surprising that those that have studied at Universities, Toiled to build businesses and have struggled to create trade and provide employment get a little pisssed off with paying extortionate taxes, just so that some idle, incompetent and ineffective public sector worker can get a big fat bonus.

Add to that list; Spain, Portugal, Italy Slovakia, Slovenia, Cyprus and Malta and the Euro Currency simply becomes one big Public Sector Pension Fund that could end up being funded by German and French Tax Payers......
 

Biped

LE
Book Reviewer
#19
We should do a 'Soros' by, as a nation, speculating like b@stards on the EU currency, sinking it like a stone, and then buying up loads of however it turns out - whether it's a hugely devalued Euro on the way back up or . . . . . . . . Deutchsmarks!

Yeah Merkal, stick that up yer Europhile pipe!
 
#20
All my chums and I want to know is whether or not we can afford to go for another thrashing at Madam Fifi's in Lorient this year
Now if the Euro is devalued that might help quite a bit.
 

Similar threads

Latest Threads

Top