June 2, 2005
E UNIQUE (via Robert Schwartz):
Euro sinks further after ‘break up’ talk (Steve Johnson, June 1 2005, Financial Times)
The under-fire euro fell further on Wednesday, slumping to an eight-month low against the US dollar amid rumblings over the long-term future of the eurozone.The fresh selling was prompted by a report claiming that Hans Eichel, the German finance minister, and Axel Weber, the president of the Bundesbank, were present at a meeting at which the possible break-up of European Monetary Union was discussed.
The German Bundestag is also said to have commissioned a report on the legal repercussions of a country wishing to leave the EMU.
Germany’s finance ministry labelled the talk “absurd”, while Mr Eichel and Mr Weber issued a statement saying the euro was a “unique success story”. But the damage had been done.
Abject failure is certainly a unique kind of "success." Posted by Orrin Judd at June 2, 2005 12:00 AM
The real quetion is will the Euro exist in 12 months? What's the over/under?
Posted by: Robert Schwartz at June 2, 2005 1:41 AMIt will exist, but it will be beaten down into humility, not recognized by the nomenklatura until after the fact.
Posted by: jd watson at June 2, 2005 5:41 AMGood question as to how long (if) the euro survives. I worked in a financial services company with large international operations and the conversion of the individual currencies into the euro was a big event - I suspect if the euro dissolves into the individual currencies it will be a big event again.
Posted by: AWW at June 2, 2005 6:57 AMIf they want to have the world's reserve currency and the advantage of trade in a common currency, they can just adopt the dollar.
Posted by: David Cohen at June 2, 2005 8:10 AMThe real question is, how much did Buffet/Gates/Soros lose?
hehehehehehehehehehehehe
Posted by: Sandy P. at June 2, 2005 1:02 PM