The Collapse Of The Euro: Insights By Joseph Stiglitz And Hugh Hendry - Two Part BBC Miniseries
Must watch two part BBC series recapping recent events from the perspective of the other side of the pond, including some much needed "on location" reporting (as opposed to persistent theorizing of "what may happen"). The first part provides the background on the currency crisis and how hedge funds are profiting from shorting the euro. As a commentator points out, the dilemma is moral hazard or austerity measures. And while countries certainly prefer the former, sovereign bond and currency vigilantes are making the second the only viable outcome.
"The sovereign debt crisis has exposed a flaw in the design of the Eurozone. To make a currency strong you don't just need bank notes and a central bank, you need central authority and political will. Some in the markets, are beginning to see the euro not as a permanent currency for all time, but as temporary and fragile, as, well, Lehman Brothers."
The second part is a great exchange between Nobelist Stiglitz and the ever outspoken, and conversation dominating, Hugh Hendry.
"Hello, can I tell you about the real world. Greece is paying 7% on 2 year money. Greece has debt which is 107% of its GDP. It never used the good time to save money. Therefore it finds itself compromised in the difficult economic environment of today cause it spent all the money in the prosperity."