Re: Eurozone will collapse...
It will make you feel a whole lot worse, trust me. And if it seems as if our system magics money out of thin air ... That's because it does. :(
---------- Post added at 18:47 ---------- Previous post was at 17:28 ---------- Quote:
http://www.google.co.uk/url?sa=t&sou...yU77nHnvt87yHg |
Re: Eurozone will collapse...
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Usually they sell bonds to countries like china. Or it could be as simple as printing money. |
Re: Eurozone will collapse...
What do you think interest bearing bonds are if they aren't borrowing? They're a promise to pay back a certain amount of money that has been provided in advance after a period of time with interest payable in the interim. Sounds like borrowing to me?
Printing money isn't 'usual' either, we've done it with our quantitative easing programme but this is not 'usual', it's very unusual due to its effects. |
Re: Eurozone will collapse...
So apparently the banks 'create' money on the books from nowhere. Their gain comes from the interest due on this imaginary money.
If that's the case surely it could be un-created just as easily, leaving just an agreed and hopefully much-reduced interest fee payable as settlement. |
Re: Eurozone will collapse...
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http://en.wikipedia.org/wiki/Securitization Once this stuff is created it's quite real and can't be made to disappear unless someone is prepared to purchase the securities / bonds and tear them up. |
Re: Economy is worse under us, says Cable
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Re: Eurozone will collapse...
Yes how typical of the EU leaders to be so decisive when it really matters.. :rolleyes:
What planet are these guys on? If they spent less time time patting eachother on the back and more time facing up to the tough realities of economic life we'd all be a lot better off. I've long considered the economy to be a house of cards and right now that's looking rather generous. |
Re: Eurozone will collapse...
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Re: Eurozone will collapse...
Someone once said "If builders built buildings the way programmers write programs, then the first woodpecker that came along would destroy civilisation." Perhaps he should have said "economists" and "economy". :p:
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Re: Eurozone will collapse...
http://www.bbc.co.uk/news/business-15533940
Greece will hold a referendum on the conditions of its bail out. Pesky Greeks, upsetting the EU apple cart with their ancient democracy. Honestly, you'd think they invented it ... |
Re: Eurozone will collapse...
I guess having 10% of their population protesting on the streets day after day finally gave them the hint that while there are a lot of issues at home the people don't deserve to pay for them with such savage austerity and a flat economy to protect other nations.
I have a little sympathy for banks though, many were required to invest in Greek debt. Italy seem to be in bad shape at the moment, before long Silvio may have to stop trying to score with teenagers and actually take some action - what's happening puts in sharp focus how dependent on the EU backstopping their economy Italy have been. Quote:
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Re: Economy is worse under us, says Cable
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Re: Eurozone will collapse...
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Re: Eurozone will collapse...
I guess the sooner the crash happens the sooner the rebuilding can happen; rather than helping those who made bad investment decisions
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Re: Eurozone will collapse...
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