Euro Crisis

[lysis]

I know that this doesn't pertain to watches, but given the large number of European members here, I was wondering how many of you are dealing with the recent crises in the European markets -- the freefall of the European exchanges, the Greece disaster, the fall in the Euro, and so forth. Although we've had similiar moves in our markets here in the United States, the average American seems blissfully unaware of what's going on in the Eurozone.

[offshore]

Can assure you that the average Aussie tool seller is VERY aware of whats going down-

http://www.rwgforum.com/topic/117252-whos-been-watching-exchange-rates/

O/S

[Pugwash]

Here in the UK, we are shielded from the worst as we don't use the euro as our currency. However, we can feel our own economic crisis.

The worst for me though is the euro-sceptics coming out with their "I told you so" crap.

[HauteHippie]

I know that this doesn't pertain to watches, but given the large number of European members here, I was wondering how many of you are dealing with the recent crises in the European markets -- the freefall of the European exchanges, the Greece disaster, the fall in the Euro, and so forth. Although we've had similiar moves in our markets here in the United States, the average American seems blissfully unaware of what's going on in the Eurozone.

Well the Europeans now find themselves in very much the same situation as Americans in regards to their currency in the long run. The bailout of Greece's creditors is just the beginning and the moral hazard created by European politicians here all but ensures this won't end well. Up until early '08 I was invested in the Euro. I still have a bit lying around, but most of it has been converted to gold now. In the short term, I think the dollar's problems will outweigh the Euro's. But in the long run, they're both headed down the same path. And the writing has been on the wall for some time. It's not too late to reallocate and come out on top, though. So if you don't want to be burned by the "I told you sos", then don't be.

[freddy333]

I guess I am 1 of the few here who watch the market trends on a daily basis. I am no economist, but it seems pretty simple to me - when you spend more than you make, you have to borrow more than you want. Ultimately, there are only 2 options - make more (raise taxes) &/or spend less (cut non-essential spending).

[ubiquitous]

Rather interesting that the proposed solution to fixing much of Greece's problems is to privatize things like healthcare and the sort

[jkerouac]

The EEC expanded too quickly and should have maintained stricter admission standards. They're paying the price, which is severe for the poorer and richer members alike.

It even impacts those of us in the U.S. who own stocks or work in businesses that rely on trade with the EU countries. But those setbacks will be less severe and shorter than the setbacks experienced by our European friends.

What I most wonder about, though, is what the consequences of the EU crisis will be for European non-member countries such as Switzerland. Will they fare better because they stayed out of the EU, or will they be dragged down along with their neighbors?

[Member X]

I would have thought they would fare better with regards to business confidence in the country, and probably with exchange rates as well, as if the Euro falls against major currencies like the USD, I can only see it doing the same against other currencies.

Overall I think any system that tries to govern multiple previously separate economies with a currency that was fixed at one exchange rate upon entry, and has one main interest rate for all regardless of whether they're in a recession or growth situation, can only be bound to have major problems in the long term.

And yes, I'm a euro sceptic lol