June 9, 2010
Confidence continues to turn negative with investors
Rich Miller at Bloomberg Businessweek has coverage of an unpleasant survey for the eurozone: 73% of investors polled believe the IMF/eurozone bailout will not succeed, and the collapse of the euro is inevitable. In simple terms, many believe the euro is too strong a currency for some member states, and those countries will be forced to quit the euro to ease internal pressures:
" Global investors have little confidence in Europe’s efforts to contain its debt crisis or in European Central Bank President Jean-Claude Trichet, with 73 percent calling a default by Greece likely.
Only 23 percent say they expect the region’s almost $1 trillion rescue package to both keep the European monetary union together and prevent a debt default by a government, according to a quarterly poll of investors and analysts who are Bloomberg subscribers. More than 40 percent say Greece is likely to abandon the euro.
... Fifteen percent of those polled say it’s likely Spain would be forced to dump the euro as its currency to help ease the pain on its economy. One in five see Portugal making that move.
...Investors in Europe are about evenly split on Trichet’s performance at the central bank. Forty-eight percent give him an unfavorable rating, while 46 percent see him in a positive light. The rest have no opinion."
The article also contains a quick overview of the situation for the United States vis-a-vis the european currency issues.
Related:
2011 – Creating the European Financial Stability Facility (EFSF) & the "PIIGS"
2017 – Another Greek Economic Crisis?
The Drachma almost returned to Greece 2013–2017
Greek economic Survival in the 1990s
Greece's Golden Visa program
