M
minimum6
Guest
Hi,
I've a modest amount of savings. Some of its in an irish bank, and some of it in Rabodirect.
I'm reading recently that there's a chance of euro fragmentation - that perhaps Germany may decide to quit the currency, or that if Spain has difficulty, we may have a currency crisis of some form causing the Euro to fragment.
I don't assess this as likely, but I've heard from some sources I find very credible, to the extent that I'd think about happens if this occurs.
As I understand, there is no current legal/financial mechanism to fragment the euro - but I'm sure one would be found if it became necessary.
So... If the euro fragments, and we end up with some form of devaluing punt currency here, what would happen?
I presume euro savings in Irish banks would get converted in the new punts? (and then devalue rapidly?)
Any guesses on what about savings in the dutch owned, but operating solely in Ireland, rabodirect?
nytimes.com/2010/05/07/opinion/07krugman.html
krugman.blogs.nytimes.com/2010/04/28/how-reversible-is-the-euro/
One respected economist commentating on this issue:
I'm just wondering what peoples take on how this might occur is, and what sort of contingencies/hedges people are taking against it?
I've a modest amount of savings. Some of its in an irish bank, and some of it in Rabodirect.
I'm reading recently that there's a chance of euro fragmentation - that perhaps Germany may decide to quit the currency, or that if Spain has difficulty, we may have a currency crisis of some form causing the Euro to fragment.
I don't assess this as likely, but I've heard from some sources I find very credible, to the extent that I'd think about happens if this occurs.
As I understand, there is no current legal/financial mechanism to fragment the euro - but I'm sure one would be found if it became necessary.
So... If the euro fragments, and we end up with some form of devaluing punt currency here, what would happen?
I presume euro savings in Irish banks would get converted in the new punts? (and then devalue rapidly?)
Any guesses on what about savings in the dutch owned, but operating solely in Ireland, rabodirect?
nytimes.com/2010/05/07/opinion/07krugman.html
krugman.blogs.nytimes.com/2010/04/28/how-reversible-is-the-euro/
One respected economist commentating on this issue:
I'm just wondering what peoples take on how this might occur is, and what sort of contingencies/hedges people are taking against it?
