eurozone collapse and me

Mr Jack said:
If you have a pension it will be hit hard. If you have any investments they will be hit hard.
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That's not necessarily true. It depends where the funds are invested.

the stockmarket will plummet.
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And? The stock market is volatile and always has been.

The economic effects over the medium term will be much more damaging. Except the UK to enter a second recession, and take a long time to return to more than sub single digit growth. This means a lot of job losses in the private sector and, likely, yet more "austerity" cuts in the public - which, in turn, will cause more private sector losses.
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I suspect this would have happened regardless of the Euro collapse.

Tax rises and service cuts are also likely.
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That's life generally. Taxes only ever go up. Any tax cuts are usually of short duration and largely insignificant.
 
But say I don't have any savings or investments, assuming I don't lose my job it doesn't affect me personally...
 
Jonny69 said:
But say I don't have any savings or investments, assuming I don't lose my job it doesn't affect me personally...
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It'll still affect you. Prices will rise and your pay packet wont. Interest rates for debt or savings will change, as well as the difficulty of obtaining it. Becuase so many people employed, chances are your company won't shift as much and will have to scale back.
Just like last recession some of us came through barley noticing it. But prises still raised.
If the euro zone collapsed though, that recession would pale into insignificance. Price rise and enemployment would massively increase.

Which is why they will give huge bailouts to countries.
 
but it will :p

If the countries in the Eurozone are economically challenged then we, in turn, become more economically challenged. This is negative to you.
 
Most of the banks will have to default on loans meaning a collapse in borrowing. It's like what we saw a few years back but on a global end of days scale. If the banks aren't moving then they can't lend which as we saw last time, businesses can't survive and there's no one or no money left in reserve for bail out.. It'll be like the central heating blowing.. the public sector pension saga will seem like a dripping tap in comparison.
 
Admiral Huddy said:
Most of the banks will have to default on loans meaning a collapse in borrowing. It's like what we saw a few years back but on a global end of days scale. If the banks aren't moving then they can't lend which as we saw last time, businesses can't survive and there's no one or no money left in reserve for bail out.. It'll be like the central heating blowing.. the public sector pension saga will seem like a dripping tap in comparison.
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and the winner of MR.Pessimism 2011 goes to HUDDY!!!!!

kd
 
The only way out for the euro is to print loads of money or borrow loads of money.

Printing will be very tempting, but that could make the currency worthless, bring high inflation and make economic recovery very difficult.

Borrowing more money is not so tempting as you actually have to show people that you are credit worthy. This is a pain, if you do borrow more economic recovery is also very difficult because you are burdened with large amounts of debt and interest.

So in the end you have to make your economy work, but this is very difficult as well and me be impossible now due to the already incurred debt burden.

So the end game is either default or print loads of cash, either way you are in a mess. The only question is the timing.
 
Jonny69 said:
But say I don't have any savings or investments, assuming I don't lose my job it doesn't affect me personally...
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actually it will, as you need food and a roof, maybe some electricity.

oh and a future would probably be nice.

also.. how about law and order and health and old age
 
King Damager said:
and the winner of MR.Pessimism 2011 goes to HUDDY!!!!!

kd
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haha :D to be honest I work for a German Bank and we don't really have much of an idea what will happen. We've not even been told what to to do if the event happens. The German economy is in better position than the rest of the euro zone, bit it doesn't make them any less vulnerable. I know that future proviosions are being made.. but it might be little to late :(
 
I have savings with ING (Dutch owned) and a mortgage with Santander (Spanish owned)
will either of those be affected if the euro does collapse?
 
Admiral Huddy said:
haha :D to be honest I work for a German Bank and we don't really have much of an idea what will happen. We've not even been told what to to do if the event happens. The German economy is in better position than the rest of the euro zone, bit it doesn't make them any less vulnerable. I know that future proviosions are being made.. but it might be little to late :(
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You'll probably be fine. Germany is doing ok. In fact they've got a huge trade surplus because of the Euro. Hence my comment that the Euro has given much more to Germany than it might be about to lose... Unless this problem is going to create 10 years of issues - it may well do, but 10 years of benefits so far for Germany.

kd
 
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