Thoughts on the Euro Crisis?

For me it just goes in one ear and out the other. Hence the 'air out'.

Well will not be changing any money into our euro account until the last poss moment.If the euro dies skiing will be cheaper in the long run axcept in Gemany . Still what do i know greater minds than mine got into this mess.
Goff

Let me tell you what I know through a client of mine who is highly connected.

I am told the Euro can only survive if it splits into 2 zones: North and South. North will be France, Germany, Austria, etc and South will be the failing nations like Greece, Spain, Italy etc.
There will be 2 rates of exchange.

This has to happen as the countries in the eurozone who are doing ok are being bled dry. However, this does not take into account a nation coming out of the euro, as this was never considered an option, and if 1 nation opts out, it sets a precedent and others could do so.

I have also heard a rumour that Germany is already printing Deutschmarks in case they decided to pull out, and in which case the Euro will fail as without Germany its almost worthless.



However, what happens in those countries who go back to their own currency, no one knows. Prices may go up, they may go down. We might be able to buy their currency cheap, we dont know. What I personally dont get is that the £ is weak, the Euro is weaker, but the £ cant buy the euro at a cheap rate. It doesnt make sense to me.

As for skiing....who knows. It may remain a constant cost for us here in the UK, it may become more expensive. In the meantime, the euro remains and the rate of exchange is roughly the same as it has been for a couple of years now, which is not particularly good. But I cannot see the euro collapsing in the short term, so try not to panic.

December really is the month that the sticking plasters run out. If the politicos sort it out this week then it will continue, if not then Greece will default and be kicked out. There will then be a split, but the markets may still hunt down France.

I had my work xmas party on Friday (I was drinking a lot of the happy juice in training for skiing)

I chose to sit next to the CFO....I know, bad mistake as I had to be on best behaviour!!

Great decision, he is a keen skier!! I asked him for his opinion on the Euro. He said it wont collapse. Simple

I believe him. He also showed me a pic of his wife skiing last year....she is nice :D

It won't die in the immediate future - effectively bankrupt countries like Greece can't leave because they have nothing to legitimately convert into a new currency so can't leave until and unless they have turned their finances around which will take a long time.
In the short term it might make skiing in Italy more expensive as they try to grab as much tourist cash as they can to balance the books.
Look at French prices - otherwise called legal robbery. Funny how the locals seem to use vouchers in the resort cafes.

andymol2 wrote:
Look at French prices - otherwise called legal robbery. Funny how the locals seem to use vouchers in the resort cafes.

That sir is a very good point

andymol2 wrote:It won't die in the immediate future - effectively bankrupt countries like Greece can't leave because they have nothing to legitimately convert into a new currency so can't leave until and unless they have turned their finances around which will take a long time.
In the short term it might make skiing in Italy more expensive as they try to grab as much tourist cash as they can to balance the books.
Look at French prices - otherwise called legal robbery. Funny how the locals seem to use vouchers in the resort cafes.

If you can't afford it don't go is the simply answer :wink: