I think your comments are very much in line with Flosmichael’s and I really couldn’t disagree with them. It is a real dilema for eurozone members and is what is called the moral hazard.
It was a question of which country blinked first and Germany and its partners did.
I believe that this is going to be a very bumpy ride for the eurozone and also for that matter the UK because we face similar economic problems to the club med countries. The only difference is that the UK probably has a better record of delivering cuts and paying its taxes than say Greece or Spain
It will be interesting to see whether Greece et al will be able to carry out their promises particularly in the face of a possible backlash from their electorate. Conversely the german taxpayer may also make clear to their government that they are not prepared to support its policies of propping up profligate member states
The continuing turmoil in the world economy makes it very difficult to predict what affect it will have on all of us
The eurozone members have reacted very slowly to this crisis, in fact I’m still wondering if they’ve got their heads around it or are just playing dumb in order to fudge their way through it.
But to me, it looks like a fairly huge gamble, as now the survival of the euro depends on how well the Greek government manage their people through internal devaluation, and further down the line the same when Spain and Portugal are needing to roll over their debt.
Interesting that Merkel is still saying that rules is rules… Are the german playing bad-cop/good-cop in this at the same time? Fascinating really…