Greenspan: Why European Union Is Doomed to Fail!

[Danno 1,228]

Greenspan: Why European Union Is Doomed to Fail

The European Union is doomed to fail because the divide between the northern and southern countries is just too great, former Fed Chairman Alan Greenspan told CNBC in a recent interview.

"At the outset of the creation of the euro in 1999, it was expected that the southern eurozone economies would behave like those in the north; the Italians would behave like Germans. They didn’t," Greenspan said. "Instead, northern Europe fell into subsidizing southern Europe’s excess consumption, that is, its current account deficits."

Greenspan predicts that as the south's fiscal crisis deepens, the flow of goods from the north will stop altogether and southern Europe's standard of living will go down.

"The effect of the divergent cultures in the eurozone has been grossly underestimated," he added. "The only way to have several currencies from divergent nations lumped together is if they are culturally close, such as Germany, the Netherlands and Austria. If they aren’t, it simply can’t continue to work."

Greenspan feels that, to a very large extent, what’s driving the United States at the moment is Europe. "Today, there is one single integrated global stock market," he said.

He also expects the European crisis, coupled with a failure to address the U.S. budget deficit, may be severe enough to cause a bond market crisis if the market suddenly decides the U.S. is more like Greece than not.

"It is very difficult to predict when a bond crisis could happen," he said. But getting an agreement on the U.S. budget will be difficult, he added, because Washington is the most polarized he's seen it in his career.

<snip>

http://www.cnbc.com/id/45033013

[Bad_Daddy 2,209]

Maybe Greenspan can tell us something the world hasn't already known for years. Everyone knows the Mediterranean countries are lazy and backwards compared to Northern Europe. Like when is a Spaniard, Italian or Greek ever going to work as hard as a German, Dane, or Dutchman? It just doesn't happen...blame it on the culture, too much sun...whatever.

Edited October 26, 2011 by Why_Me

[kytwell 179]

Maybe Greenspan can tell us something the world hasn't already known for years. Everyone knows the Mediterranean countries are lazy and backwards compared to Northern Europe. Like when is a Spaniard, Italian or Greek ever going to work as hard as a German, Dane, or Dutchman? It just doesn't happen...blame it on the culture, too much sun...whatever.

We all die in the end. I'd much rather enjoy life and all it has to offer, than being remembered as a hard worker who died young.

I've been to Germany and Greece. Not to stereotype, but my own observations. In Germany, they want to perfect everything except smiling and having fun. When we would go out by 10pm, the 30-40-50yo's were yawning and ready to go to bed for work the next day and the crowds were separated the old here, young over there. To contrast that with Greece, the evening doesn't even get started until 10pm. And all are out together from kids all the way up to the elderly, they're at the taverna laughing, eating, drinking and having a good time. In other words, enjoying life versus cutting short their evening of enjoyment to go home to bed; to go work for "the man" in the morning. Call them lazy or whatever, but I admire them for their decision to enjoy life to the fullest and not be a slave to the almighty dollar.

[^_^ 5,021]

We all die in the end. I'd much rather enjoy life and all it has to offer, than being remembered as a hard worker who died young.

I've been to Germany and Greece. Not to stereotype, but my own observations. In Germany, they want to perfect everything except smiling and having fun. When we would go out by 10pm, the 30-40-50yo's were yawning and ready to go to bed for work the next day and the crowds were separated the old here, young over there. To contrast that with Greece, the evening doesn't even get started until 10pm. And all are out together from kids all the way up to the elderly, they're at the taverna laughing, eating, drinking and having a good time. In other words, enjoying life versus cutting short their evening of enjoyment to go home to bed; to go work for "the man" in the morning. Call them lazy or whatever, but I admire them for their decision to enjoy life to the fullest and not be a slave to the almighty dollar.

We could all have a lot more fun in life if we'd learn to make do with less. Keeping up with the Joneses (I hate that expression but don't have a better alternative) is the primary reason we don't have fun anymore. We no longer know how to have fun on the cheap and we no longer have money to have fun in a manner we deem suitable.

[Mr. Big Dog 10,747]

We all die in the end. I'd much rather enjoy life and all it has to offer, than being remembered as a hard worker who died young.

[Dakine10 5,452]

Maybe Greenspan can tell us something the world hasn't already known for years. Everyone knows the Mediterranean countries are lazy and backwards compared to Northern Europe. Like when is a Spaniard, Italian or Greek ever going to work as hard as a German, Dane, or Dutchman? It just doesn't happen...blame it on the culture, too much sun...whatever.

Isn't it customary to add the "but I'm not a bigot" disclaimer that usually follows that kind of #######. Or is it just a given at this point that you are one.

[Mr. Big Dog 10,747]

I've been to Germany and Greece. Not to stereotype, but my own observations. In Germany, they want to perfect everything except smiling and having fun. When we would go out by 10pm, the 30-40-50yo's were yawning and ready to go to bed for work the next day and the crowds were separated the old here, young over there. To contrast that with Greece, the evening doesn't even get started until 10pm. And all are out together from kids all the way up to the elderly, they're at the taverna laughing, eating, drinking and having a good time. In other words, enjoying life versus cutting short their evening of enjoyment to go home to bed; to go work for "the man" in the morning. Call them lazy or whatever, but I admire them for their decision to enjoy life to the fullest and not be a slave to the almighty dollar.

Germans work too much and live too little? Odd.

Weekly working hours in Germany: 35.5

Weekly working hours in Greece: 42.4

I take the former over the latter.

[kytwell 179]

My small personal observation when contrasting the 2 countries was that: one lives to work, the other works to live.

Now, I need to get out of work, go take a shower in some scent free soap, put on my carbon activated suit, grab my bow and go hug a tree. In the hope of locating Bambi's Daddy, so I can have dinner tomorrow night.

[luckytxn 2,265]

Germans work too much and live too little? Odd.

Weekly working hours in Germany: 35.5

Weekly working hours in Greece: 42.4

I take the former over the latter.

It is called efficiency. I been also to both areas in Europe. Nobody parties and has fun like the Germans. It has been quite a few years but am still sure they are still the same.

[slim 1,530]

go take a shower in some scent free soap, put on my carbon activated suit, grab my bow and go hug a tree.

You know that's a bunch of #######, right?

Hunt the wind, not the animals. Hell, enjoy a stogie while you're doing it. They'll never know.

[Mr. Big Dog 10,747]

My small personal observation when contrasting the 2 countries was that: one lives to work, the other works to live.

Germans do NOT live to work.

It is called efficiency. I been also to both areas in Europe. Nobody parties and has fun like the Germans. It has been quite a few years but am still sure they are still the same.

It sure is.

[Nina~ 431]

Happy Oktoberfest!

[Mr. Big Dog 10,747]

Happy Oktoberfest!

That looks like hard work right there.

[kytwell 179]

You know that's a bunch of #######, right?

Hunt the wind, not the animals. Hell, enjoy a stogie while you're doing it. They'll never know.

True, when hunting in urban/suburban settings, or with a gun or in my backyard. Today though, I wanted to put my climber(old fire type hose to protect from harming bark on the tree) up a tree that's in a ravine where the wind current isn't always constant and tends to swirl, but it's an awesome pinch point(funnel) for the deer and the farmer was cutting the cornfield today. I saw a few scrub bucks, but not the dominant one I'm after at that spot. I start 2 weeks of vacation after 4pm Friday and will be out hunting hard with the bow. Hopefully I can fill my antlered tag by then. Then I will start filling my antlerless tags.

I'll have to get over to Germany again, the area I visited before is Dresden. I'll have to check out some of the other areas to see how they enjoy life.

[scandal 951]

Greenspan is wrong, everything is going to be ok in Europe. The Chinese are riding to the rescue.

By Associated Press, Updated: Wednesday, October 26, 3:37 PM

NEW YORK — Stock indexes finished higher Wednesday following reports that China will come to the aid of Europe by investing in a financial rescue fund.

Agence France-Presse reported that China has agreed to invest in Europe’s financial rescue fund, which will be used to support struggling countries and banks in the European Union. The Dow Jones industrial average jumped more than 100 points after the report came out in the early afternoon.

Stocks had been mixed for much of the day as investors weighed stronger earnings from Boeing and Corning with uncertainty about the outcome of a key meeting among European leaders.

Top European officials met in Brussels to discuss how to contain the region’s debt crisis, which has festered for two years. One consideration is increasing the power of a financial rescue fund, which Germany’s parliament approved shortly before U.S. stock markets opened.

European officials announced a plan after the U.S. market closed that will require the region’s banks to increase their levels of cash to better protect themselves from losses on the Greek bonds they hold. European governments have been pressing the banks to forgive significant amounts of the Greek government’s debt.

“This is a total news and rumor-driven market right now, and everyone’s attention is focused on Europe,” said Joe Bell, an analyst at Schaeffer’s Investment Research.