Warnings mount on euro crisis, credit crunch

[xchrom]

http://uk.reuters.com/article/2011/09/22/uk-eurozone-idUKTRE78I4JL20110922

(Reuters) - The euro currency project is in danger due to member states' runaway spending and the resulting sovereign debt crisis, a European Central Bank study warned on Thursday amid mounting global calls on Europe to take more decisive action.

The study, perhaps the most strongly-worded warning about the future of the euro by a central banker, was a parting shot from ECB chief economist Juergen Stark, who resigned this month after opposing the bank's policy of buying troubled countries' bonds.

"Greatly increased fiscal imbalances in the euro area as a whole and the dire situation in individual member countries risk undermining stability, growth and employment, as well as the sustainability of EMU (Economic and Monetary Union) itself," the research paper said.

The report, published by the ECB but not officially endorsed by it, called for compulsory fines on states that run deficits above 3 percent of GDP and "financial receivership where adjustment programmes do not remain on track."

[Dreamer Tatum]

1. Remember when everyone here wanted to convert their dollars into euros?

How'd that work out for everyone?

[xchrom]

2. convert to pais then -- see that works.

none of it is working.

[RainDog]

3. if they did it when the euro was low and cashed in when it was high

it worked out okay, I guess.

[Dreamer Tatum]

4. No, they wanted to do it when the dollar was weak against the Euro.

Because the dollar's crash was imminent.

It was comical, to say the least.

[RainDog]

5. ah. the euro is rising against the dollar again for the last week

it's been crashing, tho, for a few weeks. not yet down to where it was a decade ago, but close.