Forum Post: Investment Bankers
Posted 11 years ago on May 14, 2012, 2:54 p.m. EST by joshivik
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Grexit, Italeave and Portugone.. new terms for Greece, Italy and Portugal's exit from the eurozone.. Global investment bankers instead on running banks, coin these catchy terms to justify their hefty salaries.. As a global citizen, I will hit back for free.. my new name for JP Morgan, Goldman Sachs and Standard's & Poor.. JP Moron, Goldman Sucks & Standards are really Poor...
Follow @GSElevator for fun and profit.
If those countries departed from the European monetary union, Spain (and probably Ireland) would quickly follow, and the Euro would become unsustainable (or at very minimum, the economies of the few northern European countries left in the union would shrink, because the value of Euro would rapidly appreciate until some sort of equilibrium is reached). Quite frankly, the best thing these weaker nations could do for themselves is leave the European monetary union (but at this point Europeans are psychologically attached to the currency).
Not quite. If these countries broke free of the EU, their credit ratings will get even worse, their individual currencies would be worthless and there would be a very good chance of hyperinflation.raising debt would be nearly impossible for these countries. Their best course of action is to stay within the euro and accept its terms
In the short term, yes, but long term ... countries like Greece need weaker currencies to have an export economy (and sustain manufacturing). Europe is not one country (and trying to have a unified currency across a continent like Europe, guarantees the sort of dysfunctional outcome we're getting).
Yes I agree that having a common currency means the EU countries cannot have independent monetary policies. In fact it was largely on the strength of the Euro that Greece was able to borrow so heavily. In this case I wholeheartedly agree with you (perhaps for the first time)