Is the pound set to make a comeback against the Euro?

As it says - all of the financial stuff!

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dazza
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Postby dazza » Sat Nov 19, 2011 7:36 pm

I actually wrote 'may be stabilising' not 'is'. There is an enormously long way to go yet.Mainly to do with the populations willingness to accept economic policy being dictated by the IMF/ECB and every eurozone finance ministry (as revealed when the draft Irish budget was left abandoned by a committee member of the Bundestag Finance Committee).

A wider collapse of the banking system could still happen but the credibility of the Eurozone is vital to the wider European Economy as witnessed by Camerons request to attend Eurozone meetings.

A major European bank may collapse soon but that has already happened in the UK and the US.It is the wider credibility of the system that is at stake here.

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qwerty
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Postby qwerty » Sat Nov 19, 2011 7:37 pm

Pascalcho wrote:

when they actually start doing something to get out of the crisis instead of doing everything possible to stay in it.



This years crisis is completely manufactured, none of our current mess/problems needed to have happened on both sides of the pond!!

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dazza
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Postby dazza » Sat Nov 19, 2011 7:41 pm

Quite right the basic problem is unregulated 'Casino Capitalism' !.

Pascalcho

Postby Pascalcho » Sat Nov 19, 2011 7:42 pm

qwerty wrote:
Pascalcho wrote:

when they actually start doing something to get out of the crisis instead of doing everything possible to stay in it.



This years crisis is completely manufactured, none of our current mess/problems needed to have happened on both sides of the pond!!


I was talking about BG but if i see what happens in most countries of the EU then i really ask myself if they are that stupid or if they just want it to happen.

I do not think, although most of them are politicians, they are all that stupid.

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Postby qwerty » Sat Nov 19, 2011 7:52 pm

Perhaps we are witness to a giant political chess game that will only make sense to all us pawns as they approach check mate!!

Pascalcho

Postby Pascalcho » Sat Nov 19, 2011 7:55 pm

dazza wrote:Quite right the basic problem is unregulated 'Casino Capitalism' !.


The problem is it is regulated!
We cannot even hang the bastards!
:)

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dazza
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Postby dazza » Sat Nov 19, 2011 8:01 pm

To me it just demonstrates the fact that the finance markets now control national governments in a way that was impossible 60 years ago.The problem of toxic debt for instance and over extended borrowing/lending really hit the headlines when the markets panicked.The reason to this day that billions are pumped into economies via QE is the refusal of banks to release funds in lending.

I am not convinced by the idea that Bulgarian Banks are somehow better buffered than other European banks.This sounds like one of Boyko's governments fantasies.They are actually covering potentially huge default debts in loans which many Bulgarians will struggle to pay.I am intrigued equally by the high interest rates offered on deposits and on loans.To me this illustrates my point.

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Postby qwerty » Sat Nov 19, 2011 8:15 pm

dazza wrote:The reason to this day that billions are pumped into economies via QE is the refusal of banks to release funds in lending.
.


The liquidity trap, I'm still reading up on my Keynes for his solution to the problem other than war, which he endorsed many times to get out of economic stagnation 8O

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Postby qwerty » Sat Nov 19, 2011 8:20 pm

:lol: There is actually a very good and amusing music video about the current economic mess if you have 2 minutes..

http://www.youtube.com/user/45vienna#p/f/4/d0nERTFo-Sk

Anyone with even the slightest market knowledge will find it funny :lol:

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Postby dazza » Sun Nov 20, 2011 4:53 am

Well the right wing argument is that Keynes said we should use money accrued in the good times ie surpluses to pump money into the economy in the bad.They argue that since there is no surplus fait accompli.I have not read 'The General Theory of Money' which I seem to remember was his masterpiece, but it strikes me that QE is a form of Keynesianism, so why should be not start some public works schemes and other infrastructure projects to get things going.

Classical economists say we should do nothing and that in the long term the market will sort itself out..Keynes said 'In the long term we are all dead' !.


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