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PIIGS / Europe's Debt Troubles

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http://www.guardian....-poverty-crisis

Euros discarded as impoverished Greeks resort to bartering

Communities set up local currencies and exchange networks in attempt to beat the economic crisis

 

This is an interesting development.

Essentially, they are creating their own local economy, that keeps wealth in the area:

 

"It has been a busy day at the market in downtown Volos. Angeliki Ioanitou has sold a decent quantity of olive oil and soap, while her friend Maria has done good business with her fresh pies.

But not a single euro has changed hands – none of the customers on this drizzly Saturday morning has bothered carrying money at all. For many, browsing through the racks of second-hand clothes, electrical appliances and homemade jams, the need to survive means money has been usurped.

"It's all about exchange and solidarity, helping one another out in these very hard times," enthused Ioanitou, her hair tucked under a floppy felt cap. "You could say a lot of us have dreams of a utopia without the euro."

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Roubini Says Euro Area Better Off Even as Political Risk Remains

BusinessWeek - 3 Hours ago

Nouriel Roubini, dubbed Dr. Doom for predicting hard times before the financial crisis began in 2008, said the euro area is better off than in the middle of last year, even though political risks remain.

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Are we about to see another surge of (bad) news from Europe?

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Are we about to see another surge of (bad) news from Europe?

 

Yes!

 

Excerpt from telegraph.co.uk

 

 

"ECB bond plan in jeopardy as Italy's voters reject conditions

 

 

Italy's electoral earthquake is “a catastrophe for the euro and the European Union”, according to Luxembourg’s foreign minister, Jean Asselborn.

 

 

 

 

The verdict was much the same in chancelleries across the eurozone, especially in those countries already starting to feel the first wave of contagion.

 

“The result touches us all,” said Spain’s foreign minister, Jose Manuel Garcia-Margallo. “It is a jump into the void that bodes well for nobody, neither for Italy, nor for the rest of Europe.”

 

Almost 57pc of the Italian vote went to parties that have vowed to tear up the EU austerity script. Together they control a majority of senate seats.

 

The Five Star movement of comedian Beppe Grillo, which won 25pc of the vote, has called for a euro referendum and has a return to the lira as one of its manifesto pledges, while ex-premier Silvio Berlusconi has threatened to pull Italy out of the currency bloc unless the EU switches to a reflation strategy.

 

Even if the centre-left leader, Pier Luigi Bersani, can put together a “grand coalition” with Mr Berlusconi, there is no going back to the hairshirt regime imposed by Mario Monti’s t

 

“A deal with Monti is impossible,” said Mr Berlusconi on Tuesday. “His austerity policies have put the country into a dangerous recessionary spiral, with rising debt and unemployment, and the closure of a thousand firms a day.”

The great fear is that the European Central Bank (ECB) will find it impossible to prop up the Italian bond market under its Outright Monetary Transactions (OMT) scheme if there is no coalition in Rome willing or able to comply with the tough conditions imposed by the EU at Berlin’s behest. Europe’s rescue strategy could start to unravel.

Andrew Roberts, credit chief at RBS, said: “What has happened in these elections is of seismic importance.

“The ECB rescue depends on countries doing what they are told. That has now been torn asunder by domestic politics in Italy.

“The big risk is that markets will start to doubt the credibility of the ECB’s pledge.”

It is a widely shared view. Luigi Speranza, from BNP Paribas, said: “We fear the markets could lose faith in the OMT’s effectiveness.”

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http://www.zerohedge.com/news/2014-03-03/imf-gets-warm-welcome-spain

IMF Gets A Warm Welcome In Spain

.... the people of Spain appear upset at the IMF's appearance in their nation. Around 2,000 people protested in Bilbao today as the IMF (member of the infamous Troika) overturning cars and windows, graffiti-ing "IMF Out!" and held banners saying "Troika Go Home", denouncing economic policies that welcome austerity measures and the introduction of cuts....

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Who Will Be Hurt The Most If Greece Defaults


.... nobody stands to lose more than Europe's biggest bank by a mile: Deutsche Bank, the one bank which ..... has kept its mouth resolutely shut on the topic of a potential Grexit as soon as a few weeks from now.

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http://www.zerohedge.com/news/2015-01-08/greek-default-risk-soars-independent-ecb-dictates-greek-policy-or-else

 

Greek Default Risk Soars As "Independent" ECB Dictates Greek Policy... Or Else

 

Despite stressing time and again that the ECB cannot dictate policy within individual nation states in Europe,Reuters reports Draghi's henchmen are playing 'bad cop' to Germany's 'good cop' for now as they threaten the withdrawal of Greek financial system funding if reforms are not carried out post election. ....

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