European Debt Crisis

[ZenGum]

The Europeans loved the US debt crisis so much, they thought they'd have one of their own. Now the PIIGS are coming home to roost, or something.
The situation in Greece is causing financial waves around the world, and traders are so jumpy that last week, when someone mis-entered a trade in Proctor and Gamble, the market panicked and dropped around a thousand points in less than ten minutes, before substantially recovering.
In China, the Shanghai property index is down 40% this year. Perhaps China's boom is slowing, or ending, maybe with a bubble burst.
Are we seeing the second phase of the financial crisis? Just as the US is seeing some jobs growth.

Well, what do you peeps think?

[Griff]

Are the Greeks really as unstable a people as they appear? Who do the Greek people blame for their problems? We always have our scape-goats in the States. Finally, when do the Germans invade?

[DanaC]

Yeah...things are looking rocky as fuck in the Eurozone.

It probably isn't helping things much that the UK has dropped into a state of such political uncertainty either. Brown was a big figure in the financial storm management and now the entire political system has effectively ground to a halt, whilst the leaders of the three main parties make offers and counter offers and take it all back to their groups. Could be well into next week before we know who'll be running the show.

[Spexxvet]

Would have been worse or better if there were not a European Union?

[DanaC]

*shrugs* I don't know enough about economics to answer that I'm afraid. I suspect there's arguments for both: either membership of the Euro made small economies stronger by being part of a larger whole, or confinement within the Euro trapped countries into a system that went toxic.

The European Union and the Eurozone aren't the same thing, There are a number of nations within the Union who are not part of the Euro currency.

[Sundae]

Originally Posted by Griff

Are the Greeks really as unstable a people as they appear?

They're like the French, they love a good demo.
And a good demo is only good when it involves rocks and flames and teargas.

To be fair to them, the unrest was being hyped before it started. Marches and demos by Trades Unions and students were being touted as civil unrest, while the Greek public sat around drinking ouzo and shrugging about the state the country was in.

[elSicomoro]

It's funny to me...I look at the numbers in Greece and I'm like, "Pshaw! That's a drop in the bucket here!"

Even with the fuckup the other day on the stock market, the situation in Europe is definitely hurting the US and world markets. Imagine if the US situation got that dangerous...

[piercehawkeye45]

Originally Posted by Sundae Girl

They're like the French, they love a good demo.
And a good demo is only good when it involves rocks and flames and teargas.

To be fair to them, the unrest was being hyped before it started. Marches and demos by Trades Unions and students were being touted as civil unrest, while the Greek public sat around drinking ouzo and shrugging about the state the country was in.

Although, the Greek "iots always result in some good photos. Here are some from the protest a few days ago.

http://foreignpolicy.com/files/fp_up...5_98862564.jpg

[lookout123]

Where does it go from here? I don't know, but Nick Russo sure looks pretty damn smart with his super cycle/super bull work he has been putting out for the last couple decades.

It all sounded like "the sky is going to fall" BS to me the first time I heard it about 10 years ago, but after digging a little deeper it made sense. In retrospect it was dead on. If his expectations are as accurate for the next decade... we're pretty well fucked.

[ZenGum]

Euro leaders have agreed to a 730 billion euro set of loan guarantees. It is intended to head off the chance of a domino effect taking out the remaining PIIGS, but some critics say they're just spreading the problem around, setting the whole thing up for a bigger, worse crash later. For it to actually work as planned seems to depend on debt-laden countries learning to live within their means.

[classicman]

Originally Posted by ZenGum

critics say they're just spreading the problem around, setting the whole thing up for a bigger, worse crash later.

Same thing some critics here are saying.

For it to actually work as planned seems to depend on debt-laden countries learning to live within their means.

Highly unlikely in today's climate.
Color me pessimistic