Banks, companies and investors are preparing themselves for a
collapse of the euro. Cross-border bank lending is falling, asset
managers are shunning Europe and money is flowing into German real
estate and bonds. The euro remains stable against the dollar because
America has debt problems too. But unlike the euro, the dollar's
structure isn't in doubt.
Otmar Issing is looking a bit tired. The former chief economist at the European Central Bank (ECB) is sitting on a barstool in a room adjoining the Frankfurt Stock Exchange. He resembles a father whose troubled teenager has fallen in with the wrong crowd. Issing is just about to explain again all the things that have gone wrong with the euro, and why the current, as yet unsuccessful efforts to save the European common currency are cause for grave concern.
He begins with an anecdote. "Dear Otmar, congratulations on an
impossible job." That's what the late Nobel Prize-winning American
economist Milton Friedman wrote to him when Issing became a member of
the ECB Executive Board. Right from the start, Friedman didn't believe
that the new currency would survive. Issing at the time saw the euro as
an "experiment" that was nevertheless worth fighting for.
Read more: http://www.spiegel.de/international/business/investors-preparing-for-collapse-of-the-euro-a-849747.html
Otmar Issing is looking a bit tired. The former chief economist at the European Central Bank (ECB) is sitting on a barstool in a room adjoining the Frankfurt Stock Exchange. He resembles a father whose troubled teenager has fallen in with the wrong crowd. Issing is just about to explain again all the things that have gone wrong with the euro, and why the current, as yet unsuccessful efforts to save the European common currency are cause for grave concern.
Read more: http://www.spiegel.de/international/business/investors-preparing-for-collapse-of-the-euro-a-849747.html
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