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Anorak | The euro continues to Fall Apart: six of 17 member screws over by the currency

The euro continues to Fall Apart: six of 17 member screws over by the currency

by | 6th, July 2012

SO. We had Ireland go bust when they made the single most stupid decision of the last decade: to guarantee all the debts of all of their banks. Those debts having been caused by too low an interest rate for the economy, that single interest rate that a single currency necessarily causes, as a result of being in the euro.

Portugal went bust and needed a bailout simply because the single interest rate made it too easy for the government to borrow oodles of cash to blow.

Greece has imploded as a result of being in the single currency.

Spain’s banks need a bailout as a result of that too low single interest rate leading to a boom and then the obvious bust. Very like Ireland except they’ve not been stupid enough to guarantee all the banks.

Cyprus has just admitted that it’s bust: at the moment it’s burning through the last little bits of a loan it got, bizarrely, from Russia last

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Posted: 6th, July 2012 | In: Money Comments (4) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink