The PIIGs: Who is Next?

Robert Peston may have a funny way of speaking but he does seem to have a good grip on the Euro crisis. He is very pessimistic about the long term outcome. See Here

From the look of it, Portugal is already on the slide with bond yields already at 7% (Irish bond yields are still at over 8% and that is after the bailout package). Obviously those who buy bonds are none too confident that their money is safe and the rate has been cranked up to appeal to their greed rather than common sense.

So at what point do the Germans chuck their hand in?

They, after all are the only reason the whole thing has not collapsed already. Greece and Ireland are the smallest of the sick men of Europe. It has been difficult enough as it is.

God help us all if (say) Spain or Italy went down. If Portugal fails to make it through the next two weeks without holding the begging bowl out I cannot see the Germans continuing to issue blank cheques.

Going back a few months, when this crisis first broke out I picked up a report that Germans were closely examining their high denomination Euro notes. Evidently you can tell which country printed what. The report stated that the rattled Germans were only accepting notes printed in Germany.

I don't expect anything has changed.

Euro Crisis; Relying on Germany

There was an old 2008 joke: "What is the difference betwen Iceland and Ireland?"
The answer was one letter and six months.

To be fair that 6 months dragged out to be two years but the essence of the joke is brutally true.

Dear Angela Merkel is going to have to butter up her German electorate a lot more to get them to pay for not only Greece, but now Ireland. Maybe soon, Spain, Portugal and Italy.

But let us all remember that hard work is what the Germans are renowned for. So perhaps the rest of Europe will let the Germans do what they do best with their 60 hour weeks and unremitting efficiency. Maybe the dynamic German economy can, under pressure, support virtually the whole of Europe.

Then the bankrupt laggards known collectively as the PIIGS (Portugal, Irelend,Iceland,Greece and Spain) can get back to what they are good at... and go down the pub.

Germany Wins?

My dear depressed, disconsolate and despairing English compatriots.
It was not to be.
It might have been legitimately 4-2 but it was never going to be a victory.
We played crap.
Never mind. It was only a game.

Although one more important than life and death.

But look on the bright side.

At least we do not have to pay for the Greek spending extravaganza.

Or the Spanish.
Or the Portuguese.
Or the Irish
or the Italians.

I dare say that there are many in Germany tonight who would happily trade in their football victory for an indemnity against their Euro liability.

But tempting though such a deal would be, I suspect us grieving English losers would rather count the pound coins in our pockets, smile sweetly and walk away.

Love & kisses

Billothewisp