Wary European CEOs Move Cash to Germany

Wary European CEOs Move Cash to Germany

www.bloomberg.com

European companies spent billions preparing for the euro when it was introduced in 2000 by 11 countries. Contingency planning for an unraveling of the currency involves cutting investment, moving money to Germany, transferring headquarters to northern Europe from southern, and even going out of business, according to interviews with more than 20 executives.

(visit the link for the full news article)

Interesting watching where the money is going. Companies are now essentially betting on which countries will back out of the Euro and which won't.

Seems many companies are sure Germany will keep the Euro, and equally sure Spain is gonna bail. And Greece, well that's an easy one.

According to the article, companies with assets in Europe are not exactly panicking, but they are in "survival mode." (I guess they are trying to be tasteful with their wording.)

www.bloomberg.com
(visit the link for the full news article)

Either way, ECB needs to print more. EURO is gonna devalue massively,

reply to post by mother1138


Not betting "which countries will back out" but betting that, when the Euro collapses, which countries will have the strongest, most secure economy.

If you hold Euros and the Euro collapses, and you are HQ'd in Italy and do banking in Italy, the Euro conversion to a new Italian currency will be detrimental to your wealth .. it will depreciate severely in the FX exchange. Then calculate in the dysfunction that will occur in Southern governments of Spain, Italy, Portugal, Greece and the Balkans. And, quite frankly, France.

Germany is a solid country with a solid government and a solid economy.. if the Euro collapses Germany will be the most powerful economy in Europe. Think of Germany as the bomb-shelter of Europe.

I love it when they talk rough. It gets me all giddy.

From the OP article....

“How do you control an explosion in a controlled way?” Fiat SpA (F) Chief Executive Officer Sergio Marchionne told reporters in Brussels on Dec. 2. “That’s a contradiction in terms. This will be an implosion of some size with potentially disastrous consequences.”

Companies switched gears from preparing for a possible exit by Greece to some sort of currency breakdown after Italian Prime Minister Silvio Berlusconi’s government collapsed and 10-year Italian bond yields rose past 7 percent in November.

“A couple of weeks ago I would never have thought about having conversations on the probability of the euro disappearing, but now there is more speculation on such a scenario,” Wolters Kluwer NV (WKL) CEO Nancy McKinstry said in a Nov. 29 interview at the company’s headquarters outside Amsterdam.