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Exactly. Ask people in Italy or Greece whose banks made them take out mortgages in Euro.
by intrasight 9y ago
Exactly. Ask people in Italy or Greece whose banks made them take out mortgages in Euro.
- tedeh 9y agoWhat else would they denominate their mortgages in? Their respective national currencies were abolished after the introduction of the Euro. Although it could be argued that joining the EMU may not have been their best interest in the first place, but that is the fault of their politicians, rather than the banks.
- intrasight 9y agoThere was a gap beween the Euro being created and the elimination of local currencies.
- FabHK 9y agoYes, but during that time the exchange rate between Euro and legacy currencies was fixed.
- danmaz74 9y agoI'm in Italy, I have my mortgage in Euro, and I really appreciate the 0.9%/year interest rate I'm paying, thank you very much. Now, IF we exited the euro, devalued our currency, but my mortgage was still in euro, THEN I would be screwed...
- feintruled 9y agoIceland is the better example - during the boom years they were offered loans in Euro instead of their national currency. Then after the crash when their own currency was devalued in respect to the Euro, they were left with repayments they could not possibly service.