The European Financial Crisis

Andrew

There is some major shit going down right now in the EU with the potential to cause another 2008 economic event (but probably much worse). The new European Financial Stability Facility is about to start lending money to Ireland. This has some major ramifications. First, the fund is backed by the EU member states, however many of them (Spain, Portugal, Greece) are experiencing debt issues of their own. This means that it's up to mainly German, in addition to some of the northern European counties, to back the fund and guarantee the loans from investors. However, many of these countries haven't voted to actually participate and may back out. There is a very real, non-zero possibility that the Euro will cease to exist within a couple years and there will be massive bank runs in Europe.

Erwin

There is some major shit going down right now in the EU with the potential to cause another 2008 economic event (but probably much worse). The new European Financial Stability Facility is about to start lending money to Ireland. This has some major ramifications. First, the fund is backed by the EU member states, however many of them (Spain, Portugal, Greece) are experiencing debt issues of their own. This means that it's up to mainly German, in addition to some of the northern European counties, to back the fund and guarantee the loans from investors. However, many of these countries haven't voted to actually participate and may back out. There is a very real, non-zero possibility that the Euro will cease to exist within a couple years and there will be massive bank runs in Europe.

So you are telling me that Europe is not a place I should go make a live in, noted. I guess it is Brazil for me. I here I go 2014

Not nine

You're expecting too much from southern Europe, they don't carry shit in the EU. I know that "Three is a crowd", but seriously, "many of them"? That's 3 low performing countries out of 27. And that's just the EU member states, not even all of Europe.

There is a very real, non-zero possibility that the Euro will cease to exist within a couple years and there will be massive bank runs in Europe.

Fearmongering nonsense. Make that comment when a significant portion of the memberstates are certain to go belly up. In the mean time, learn a thing or two about the Euro.

So you are telling me that Europe is not a place I should go make a live in, noted. I guess it is Brazil for me. I here I go 2014

You could always go to Switzerland.

Nine Boomer

So you are telling me that Europe is not a place I should go make a live in, noted. I guess it is Brazil for me. I here I go 2014

You could always go to Switzerland.

Don't forget Denmark and their Danish Kroner.

Omnutia

England's still got the pound, though we still put a good deal of money into the EU.

Not nine

Don't forget Denmark and their Danish Kroner.

Or the Swedish Kroner, or Norwegian Kroner, or Swiss Franc, or Briti--that's been said already. Bunch of countries still use their own currency. Switzerland is just the stereotypical answer to "I WANT TO GO TO EUROPE BUT NOT REALLY" because they do shit all outside their own borders.

EDIT: On that note, the Pound Sterling is currently the most awesome coinage out there imho (The US still has awesome banknotes only because you can set them on fire and not burn them). At least, after the redesign. Collect them all and you get a kick ass shield.

Erwin

I forgot about Switzerland, I need to start learning zwiss german then :P

Werther

I forgot about Switzerland, I need to start learning zwiss german then :P

Or French or Italian.

There most certainly won't be any bank runs in Europe, especially in the member states that are financially well off. The situation in Ireland is very different form the situation in Spain, Portugal or Greece. Ireland had a huge financial sector and a housing bubble, which both hit rock bottom during the crisis. Spain had a huge housing bubble as well and can't employ many young people. Greece has a very corrupt and complicated bureaucracy, which has to be fixed. Each of these problems are very treatable, if not solvable in the long-term. The countries lending the most money are mostly countries which benefited a lot from the Euro, especially considering most of Germanys industry is export.

The question really is how Europe will go on. Nationalist and sensationalist politicians are talking about cutting out Greece, Spain, Portugal and/or Ireland out of the currency union, even though this is most probably a horrible idea. European countries will have to decide it they want to keep as much sovereignty as before. Countries can't simply share the same currency if many financial regulations in each countries systems are different.

Andrew

Greece is now at 98% chance of default. The Euro has fallen to a ten year low against the Yen. Italy, the 8th largest economy, is probably going to get into real trouble next without some external support from China or Germany. European instability is causing most financial markets to shrink over the past few weeks.

GreatTeacherMacRoss

And still, the US dollar is worse. Huzzah.

Jason

NEED MOAR FREE MARKET1!!!11!one

Churba

Holy shit, I never realized how short Michelle Bachmann is. She's fucking tiny!

Codger

Yeah the Greek 1 year bond yield is like ~117%. Their economy going to blow up before the end of the year IMO.

Not nine

Greece is now at 98% chance of default.

They still couldn't beat the USA though.

Andrew

The other reason why Europe is going broke.

WindUpBird

Time did an analysis of how much the price of a regular (think Starbucks' Tall) cup of black coffee will jump in each euro nation if the euro fails. Germany will see a 0% increase, and th Netherlands will see a 2% increase. Spain can expect a 38% increase, and Greece can expect somewhere between a 68-90% increase.

That means that, per the average income of a Greek employee and lowballing the increase at 68%, if the euro fails, 2 cups of black coffee daily will cost a quarter of his or her annual salary.