Flashback If the Euro Fails...

There is a difference though. Whereas the Thai government couldn't fight the speculators because it didn't have enough reserves to peg it to the Dollar the Euro isn't pegged to anything, so no exchange rate to defend. Plus the Eurozone can print money if it wants to.

I ask that you look at the roles of the ratings agencies in this. If you do this, look at the timing of the downgrading of Greek debt as it relates to huge bond sales within the USofA.

Now, think back to the roll of those exact same ragings agencies in the lead up to the 2007-08 crash...

I suggest the real culpret is the lax US controls between corperations and government regulators... there is a very cosy revolving door behind this.

Did you expect anything different when the fox is guarding/financing/regulating the hen house?

If the euro fails? It would be a chance for a new and stronger Europe not weighted down by a currency that serves only a few of its member states. I come from a EU country that thankfully stayed out of the euro but ever the spectre of it hangs above us as "our" politicians actually serve Brussels more than our own might try to forcefully introduce it. Living in the EU is becoming ever worse as power is removed from our elected officials into the hands of criminals within the EU hierarchy and the media calls it good ore improvements, in reality its a creeping loss of sovereignty that belongs to us no one else and a destruction of the only thing that matters above everything else; our country.

Just a short note,the euro cannot be allowed to fail,the reality is " assist the ailing economies of europe or you will aiding their bankers {for america add the word again}

Here is the bottom line. The EU banking system was the benefactor of the Greek bailout. The system is still very fragile and cannot sustain too many more hits. However, the bigger issue that needs to be answered is can and will stronger countries like Germany and France continue to support weaker countries like the PIGS? And is it reasonable to expect a weak country like Greece to fit into a system that is really designed for stronger countries like Germany and France? Time will tell but you can only ask for so much Irish or Greek austerity before you destabilize their government and they drop out of the EU. And you can only get the citizens of the stronger countries to prop up their weaker partners for so long before they vote in a new government to stop these bailouts. In theory it is very noble but in reality the economic imbalances may be too great to overcome.
We are in very shaky economic times, only a year ago the USA was close to an economic meltdown. And overall our banking system is better capitalized than the EU banks. So to say that a member or members of the EU cannot fail is foolish. And if a few of the EU members had to leave, were kicked out or fail the EU could collapse. That would not be a shocking event considering all the stress that has been put on the system. Remember, stress creates caution and caution creates mistrust and this leads to many investors and bankers to become ultra conservative. This real credit constraction often leads to stagnation. Just look at Japan, before their bust they were booming and credit was very easy. Since that time, over the last 17 years, they have become ultra conservative and deflation has been their biggest problem.