Monday 3 September 2012

Self-igniting euro collapse?

Loving this article from the peerless FT Alphaville today. over the sumemr lots of US companies have been thinkin about what to do to sustain their business if greece falls out of the euro. Bank of America is looking at a fleet of trucks to ship in cash from abroad (how advertising this to potential brigands is sesnisble is beyond me).

My reaction to this is that we are witnessing the further build up of the Euro crisis. bad enough is the Eurozone's inept performance at managing the crisis. Still every day senior German minister's gon on and on about not saving Greece. This forms the basis f the plot re Grexit to whcih private actors then work to.

By withdrawing all money from Greek bank accounts the Country is forced closer to bankruptcy - so the rhetoric in the media has a causal effect on Bank share prices and others in Greece.

In one weeks time is the meeting of the Trioka in Greece. After a summer lull, all the talk of eurozone collapse will return to provide and indian summer of hot air for the autumn.

What if anything can stop this cycle? I doubt myself it is possible, but when politicians are involved it maybe there is a massive printing of money or some other kind of mega-collapse that will allow Greece to continue in the Eurozone. the price for exit is a disaster of 2008 proportions, only this time piling into a much weaker Eurozone economy.


Demetrius said...

Restore the Ottoman Empire?

dearieme said...

After Greek independence, Britain gifted them Corfu and the neighbouring islands.

I think we should ask for them back to defray any debts they now owe us. Quickly, before the Krauts spread their towels across them.

hovis said...

@dearieme: I've seen a couple of greek nationalist blogs suggesting that if indeed things need to be sold of leased then to remember that the use of islands in the mediterrean are multi use - what might Russia ( ignoring it is itself seen in some quarters as a bankrupcy candidate) for a nice military base there , or perhaps the Chinese ... it wont happen the Greek poltical elite is too craven to do anything but rapaciously loot their own country with the connivance of the EU.

btw do you chap follow thsi bloke - tangential and appearing conspiracy theorist but a good read nonetheless imho

Nick Drew said...

hovis is right, the Russians are coming to Greece (official and/or freelance)

Budgie said...

Greece is being lined up as the fall guy to teach the other eurozone members to toe the Bundesbank line. Unfortunately Greece has a nasty history of fascist vs communist and, if it does exit, looks ripe for a military takeover.

I hope I am wrong but I still expect the euro to be around for some years to come. Don't forget that the UK and the USA economies are hardly better than the eurozone's. We just don't have the 'benefit' of a currency union on wildly divergent economies.

dearieme said...

Couldn't Mr Bernanke's famous helicopters help the Greeks?