01-21-2009, 11:01 PM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->If <b>Greece goes under, Italy, a G-7 country</b>, will be next in lineâits public finances are almost as bad. Britain can devalue to survive a financial crisis, but this option is not available to troubled Eurozone members tied to the euro, including <b>Ireland, Portugal and Spain</b>. Ailing banks in Eastern Europe are mostly owned by West Europe, so a banking collapse in the former could lead to massive contagion in the latter.
Indeed, the very conceptual foundation of the Eurozone, as one where a common currency ensured credit to all on good terms, is now in doubt. Wages <b>and pensions are way too high in some countries relative to others</b>. The problem was masked in good times. Now that the tide is going out, itâs becoming clear who was swimming naked.<!--QuoteEnd--><!--QuoteEEnd-->
Now watch, Syria, Egypt and Algeria.
Indeed, the very conceptual foundation of the Eurozone, as one where a common currency ensured credit to all on good terms, is now in doubt. Wages <b>and pensions are way too high in some countries relative to others</b>. The problem was masked in good times. Now that the tide is going out, itâs becoming clear who was swimming naked.<!--QuoteEnd--><!--QuoteEEnd-->
Now watch, Syria, Egypt and Algeria.