Remember that the only reason France and Germany are stepping up to the plate in the first place is because they hold the majority of Greek debt.
If it wasn't for that fact, you can bet they would be running away, or calling for them to leave the EuroZone to save the Euro.
IMHO the Euro should take a hit from this - NO WAY is €1 worth 89p given what most Europeans buy stuff for compared to me.
Only one question remains - which currency should people be buying to remain safe? Is the whole premise of currency in crisis, and not just the
financial systems that are based on it?
The #1 biggest problem is CREDIT. It should be heavily restricted, then we will have to see prices for everything drop to more affordable levels. When
the average house price is £189,000 with average salary of just £24,000/year it is crazy to suggest Joe Public can afford it.
Once the UK gets a new Government, and they see the real state (I'm curious as to why they can't see it now) they will be hiking taxes all over the
place to raise funds. I'll be we will see 20% VAT *AT LEAST* before the end of 2010, and interest rates of maybe 10% or even 15%.
It will happen if we are to have any hope of getting out of this mess for good.
We have certainly not seen the worst yet. I'll bet right now that Q1 of 2010 sees us back in recession, and that even if it picks up in Q2, that
after the General Election here in the UK (May) we will see yet another slump.
Unemployment is yet to rise further. I also predict unemployment of over 3 Million by the end of the year.
This s...... isn't over yet, and I'll bet we're not even half-way to real recovery, where people in general (not just Governments) start reducing
their debt levels.
It makes me feel sick that I've been working hard, paying taxes, and getting by, when there are people who borrowed far more than they can pay back,
and ultimately caused this problem.
They blame house prices for all the borrowing - that's just a symptom, not a cause. The real cause is the ability for people to not only get cheap
credit, but lots of it as well, which meant they were buying stuff they couldn't normally afford. Market forces came into the play - you know the
I can't wait for all this to be over, but it's going to be a good 5 to 10 years before it has been corrected.
[edit on 23-2-2010 by mirageofdeceit]