When Will Greece Leave the Eurozone?

The rumblings have long since begun. Greece is in no mood for austerity. It does not seem likely that they will stay in the Euro. They don’t want to stop spending, they don’t want to pay the debt and the want more loans. Perhaps they will try the Gyro. Some actually expect them to exit the Euro over the weekend.

Didn’t the Greek government initially misrepresent the economic information in order to admitted to the Euro zone? Why should the Germans (and the other Northern countries) now pay for that? Some have even said their economy is based on sloth and ouzo. That does not sound like a recipe for success.

While initially the Greek exit (Grexit) will cause some instability in the markets, in will likely strengthen the Euro in the long run. Many predict the Mediterranean countries exiting the Euro, leaving a smaller and stronger Euro zone.

Let us know your thoughts.


Comments

When Will Greece Leave the Eurozone? — 1 Comment

  1. In theory this might be the case but in prcsaite it would take so long that the trade deficit may have gone before this happens. In the shorter term exchange rates vary so that any gain that could be had by borrowing in a currency with a low interest rate and investing in a high interest rate are offset by the risk of a depreciating currency, again in theory. People can make money doing just that but it’s risky so you have to be cleverer than me.In prcsaite speculators control exchange rates, they gamble on a very short term basis and are totally uninterested in long term deficits if they can see a short term profit.

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