GEORGE SOROS AND THE EURO CRISIS

Euro Crisis - Does Mr Soros have the answers?

This is a really succinct explanation of the Euro Crisis where a speech by George Soros the International Financier, has been interpreted by National Public Radio of America into a distinct number of phases as follows:

1. The Convergence

Convergence of 10 year government bond interest rates when the Euro was created.

2. The False Dream

Borrowing costs for all countries in Europe should be identical.

3. The Crisis - ( Originating in 2008)

After the 2008 financial crisis, it eventually dawned on everybody that the countries that shared the euro are, in fact, a bunch of different countries, with vastly different economies — and that, despite what the officials said, not all eurozone government bonds are identical.

Bonus -- Why a Euro Break up would be bad for Germany

Firstly Germany's central bank would never be able to recover a huge amount of money its owed as part of Europe's current system.

Secondly, the end of the euro would make German exports much more expensive in the rest of Europe. That would be a big blow for a key part of Germany's economy especially the medium sized engineering companies that export so much and especially the car companies as well.

The deep problem facing the euro zone isn't just debt. It's the vast gap between the economies in the struggling countries and the economies in the stronger countries.

Plesase view:

http://www.npr.org/blogs/money/2012/06/04/154282337/the-crisis-in-europe-explained