It's not official yet, but the press releases are saying this if you read between the lines. Before it was all about how they were committed to keeping Greece in the Euro. Now Europe is open to the possibility that they might leave, and European banks are saying they do not think it would be quite as bad as they thought if they left.
Translation: The people who know, have always known they would leave. But they needed time to ease people into it to avoid panic. Now that it is inevitable, they need to admit it in a friendly-sounding, watered down way so everyone freaks out as little as possible.
Bascially its time to get your money out of Greece, and probably out of the Euro down the line.
The lesson? You can't have a single currency with widely differeing fiscal policy. Industrius Germans cannot be allowed to influence a currency alongside lazy Greeks. Smaller, independently operating nations makes more sense until real polical integration can take place.
The sad thing is that the Germans will take a kicking which they do not deserve. When Greece leaves, some banks will fail. This will freak people out and they will start taking their money out of other weak lazy-culture nations like Spain and Italy, and therefore those banks will fail. Every nation that leaves the Euro, weakens the Euro and diminishes its value and its demand. Investors don't want to hold a currency with falling demand and they will flee the Euro, which will demolish purchasing power in all nations which use it, including the good ones, and including the good banks which hold it.
When countries leave the Euro, the folks who love to predict the end times will need to take break from it as economic integration goes backwards. Don't worry something else will come up soon as a useful prophetic target I'm sure. The Korean free trade treaty maybe?
There is no chance I'm investing the market right now, and I thank God I never did when an advisor wanted me to 2 years ago.
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Originally Posted by NHL Fever
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