Eurozone unemployment rises to new record: 11.6%

[natty bumppo 297]

Probably about how much money they make in about ten minutes, not that I am worried about mcdonalds.

they spent money to protect themselves from a stupid people. yea ... less profit so they need to cut costs elsewhere or raise prices.

now think of a business not as large as mcdonalds and the protections they need to put in place ... or ... the insurance they need to have to protect themselves from stupid people just to keep the doors open

[Póg mo 1,749]

As far as Germany mis-pricing the debt..

I said German institutions mis-priced Greek debt i.e. before the crisis in 2008 the cost of insuring Greek debt against default was nearly the same as that of Germany.

[Póg mo 1,749]

Greece could default and decide not to pay it's debts but that will not be especially painful to Germany.

Maybe not, but then again Spain, Portugal, Ireland etc, might get the same idea, and before you know it Germany is hurting a whole lot more.

Also, Greek sovereign debt underpins other held by other countries, which in turn underpins yet more debt. Think of it as a kind of inverse pyramid, with Greek debt being at the bottom. This is why the US didn't want it big banks to fail, it is why Europe despite everything is still giving Greece more time to pay off it debts and its why threats of permanent expulsion from debts markets are always made to any country even thinking of default. The Greek problem could be solved by using something similar to that of Brady bonds that the US used to stem South America's financial crisis in the 1980s but so far they have chosen to go the other way and act like the crisis is some kind of morality play between prolific spenders and hardworking and honest savers. That may play well with the peanut gallery, but it isn't going solve the problem anytime soon.

[Mr. Big Dog 10,747]

They could fix the Euro zone fairly easily - all it takes is one country to exit. And that one country is Germany. That exit would allow the EUR to devalue which would help the peripheral nations that are currently in trouble. In fact, simple speculation of a possible German exit from the common currency plunged the EUR to $1.16 this summer.

[OnMyWayID 1,489]

Maybe not, but then again Spain, Portugal, Ireland etc, might get the same idea, and before you know it Germany is hurting a whole lot more.

Also, Greek sovereign debt underpins other held by other countries, which in turn underpins yet more debt. Think of it as a kind of inverse pyramid, with Greek debt being at the bottom. This is why the US didn't want it big banks to fail, it is why Europe despite everything is still giving Greece more time to pay off it debts and its why threats of permanent expulsion from debts markets are always made to any country even thinking of default. The Greek problem could be solved by using something similar to that of Brady bonds that the US used to stem South America's financial crisis in the 1980s but so far they have chosen to go the other way and act like the crisis is some kind of morality play between prolific spenders and hardworking and honest savers. That may play well with the peanut gallery, but it isn't going solve the problem anytime soon.

Very true.. My wording was a tad misleading in that last post .. When I said it would not especially hurt Germany I should have said in would not hurt them more than the other Euro countries. I would hope that if they (the heavy debtors) can stop digging the hole deeper that a more palatable solution in paying off the remaining debt is created.

[Póg mo 1,749]

They could fix the Euro zone fairly easily - all it takes is one country to exit. And that one country is Germany. That exit would allow the EUR to devalue which would help the peripheral nations that are currently in trouble. In fact, simple speculation of a possible German exit from the common currency plunged the EUR to $1.16 this summer.

Not likely to happen, Germany has too much to loose by exiting the Euro.

[Mr. Big Dog 10,747]

Not likely to happen, Germany has too much to loose by exiting the Euro.

true

[Bad_Daddy 2,209]

If I was Germany I would cut my losses and get out as fast as possible. I knew it was going to be trouble when the EU started adding all those Mediterranean countries. Germany is going to end up either carrying those countries on her back or she is going to get smart and back out.

[Mr. Big Dog 10,747]

If I was Germany I would cut my losses and get out as fast as possible.

If you were Germany, Germany would be a shitehole not a country in any position of strength. Remember that.

[Bad_Daddy 2,209]

If you were Germany, Germany would be a shitehole not a country in any position of strength. Remember that.

Explain that post please.

[Mr. Big Dog 10,747]

Explain that post please.

Germany is and stands for everything you are not. You think California is off the track. Look to the far left of California and you'll eventually find Germany.

Edited November 1, 2012 by Mr. Big Dog

[Bad_Daddy 2,209]

Germany is and stands for everything you are not. You think California is off the track. Look to the far left of California and you'll eventually find Germany.

Is that why Merkel is making tax cuts for businesses and calling for austerity?

[Mr. Big Dog 10,747]

Is that why Merkel is making tax cuts for businesses and calling for austerity?

You're railing against future oriented infrastructure projects - Germany is and has been doing those. You're railing against high taxes in California - Germany has higher taxes than California even if Merkel gets to lower them marginally. You rail against policies addressing climate change - Germany is a leader in addressing climate change. You rail against universal health insurance - Germany has pioneered the concept in the 19th century. You rail against security for people that hit hard times - Germany has one of the most comprehensive and advanced social safety nets in the world. And despite all that socialism that even the parties on the right do not dare question, Germany manages to keep a trade balance with China selling as much to them as is being bought from them. Germany runs huge trade surpluses that have on more than one occasion displaced China and Japan from the top exporter nation spot. If you would even marginally understand Germany, you would support rather than rail against California.