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Originally Posted by Kokukirin
Greece alone will not destroy Euro, but if Italy defaults, it almost certainly will.
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Let me rephrase: how does a currency get destroyed?
Quote:
Originally Posted by Kokukirin
Europe had the chance to make a bigger and complete rescue package from the start, but Germany did not want to go too far with it. So what we had instead was a series of half-hearted attempts which failed to give confidence to investors. The crisis continued to deepen and the cost to resolve the crisis mounted.
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If others are the ones putting all their stakes in, giving tips and making demands is easy. I find the idea of an earlier bail-out preventing all this amusing. We now had gigantic bail-outs and ECB interventions, even more of that is coming. The effects were disappointing - as disappointing as an early bail-out would've been. You can't bail-out against these huge deficits, and you can't even prevent them as budgets are sovereign matters.
Quote:
Originally Posted by Kokukirin
I didn't say Germany can order ECB around, but as the biggest contributor to ECB, Germany still have a big say in its decision making. If Germany were a small voice in ECB, we would have had larger rescue packages or even a new Eurobond like the French wanted.
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The ECB pumped 500 billion into the market just a few days ago. It does not have the power to implement Euro bonds - that has nothing to do with the ECB council's majorities.