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Yeah, nobody is predicting the breakup of the EU, but a lot of people are questioning the value of a single currency with a multiplicity of national banks. Res
by Vivtek 15y ago
Yeah, nobody is predicting the breakup of the EU, but a lot of people are questioning the value of a single currency with a multiplicity of national banks.
Rest assured, the Union itself is here to stay.
- bubbleRefuge 15y agoRight, and those national government banks do not have credible deposit insurance for national banks. So a bank run is possible. During the US crisis in 08/09 we had the Fed/Treasury complex insuring deposits and supplying liquidity which they can do in infinite amounts. Euro-zone nations are not sovereign and are at the mercy of the ECB. You underestimate the risk of a breakup, the Euro is broken.