Monetary union has left half of Europe trapped in depression

[Flavius22]

By Ambrose Evans-Pritchard
Last Updated: 6:52PM GMT 17 Jan 2009

Events are moving fast in Europe. The worst riots since the fall of Communism have swept the Baltics and the south Balkans. An incipient crisis is taking shape in the Club Med bond markets. S&P has cut Greek debt to near junk. Spanish, Portuguese, and Irish bonds are on negative watch.

Dublin has nationalised Anglo Irish Bank with its half-built folly on North Wall Quay and €73bn (£65bn) of liabilities, moving a step nearer the line where markets probe the solvency of the Irish state.

A great ring of EU states stretching from Eastern Europe down across Mare Nostrum to the Celtic fringe are either in a 1930s depression already or soon will be. Greece's social fabric is unravelling before the pain begins, which bodes ill.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4278642/Monetary-union-has-left-half-of-Europe-trapped-in-depression.html

[Parisien]

And everything is fine outside the euro area :)

[Parsec]

Oh yeah, and the situation in the UK, is far better because of the pound. BS.

[Mastermind]

That's the trouble with a "Global Economy"...when it melts down, you go down with it...no matter how well your own economy is prepared or managed.

[delio]

By Ambrose Evans-Pritchard
Last Updated: 6:52PM GMT 17 Jan 2009

Events are moving fast in Europe. The worst riots since the fall of Communism have swept the Baltics and the south Balkans. An incipient crisis is taking shape in the Club Med bond markets. S&P has cut Greek debt to near junk. Spanish, Portuguese, and Irish bonds are on negative watch.

Dublin has nationalised Anglo Irish Bank with its half-built folly on North Wall Quay and €73bn (£65bn) of liabilities, moving a step nearer the line where markets probe the solvency of the Irish state.

A great ring of EU states stretching from Eastern Europe down across Mare Nostrum to the Celtic fringe are either in a 1930s depression already or soon will be. Greece's social fabric is unravelling before the pain begins, which bodes ill.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4278642/Monetary-union-has-left-half-of-Europe-trapped-in-depression.html

It's easy to find scapegoat when things are hard. But in reality, some of the lesser Eurozone countries should be counting their lucky star -- Greece, I'm looking at you. If the Euro weren't their national currency, they'd have likely found their economy in Icelandic territory or worst by now.

[domokun]

Problem with smaller €uro zone countries is that devalvation of currency is not possible any more. Still I think that pros of €uro outweight cons.

[Flagg]

EU fringes are a ''canary in a coalmine'' like some us states

it's worth investing time in keeping a close eye on both ''canaries''

[sinophile]

Deutche bank reported losses of over 6bil. Many euro banks have yet to realize losses on US and Euro assets.

There is a reason the gap between the dollar and euro is closing.

Its still a stretch to say the demise of the euro is at hand, but I think its a safe bet the european central bank capitulates and takes an easy money posture soon.

[Sumadinac]

The british currency weakened considerably because of economic crisis and it's not the only one.