Here’s an interesting piece of news I read today: Benoit Coeure , European Central Bank Executive Board member, warned those doubting the single currency’s survival AGAINST betting on a euro collapse.
“I would caution those who have doubts about the euro, that they underestimate the political commitment to it at their own risk,” Coeure said.
You mean civilization is not going to end and we won’t all be riding bikes before the end of the year? Of course not, but let’s not kid ourselves here, the mountain of debt these countries have accumulated will not be paid down in a fortnight. Substantial amounts either need to be scratched off balance sheets or the magic of money printing will have to be summoned.
Not one of the EU countries can afford a breakup even though many people feel it would be the best outcome. The economic cost for Europe and the world would be staggering. But having said that, you never know what unforeseen events end up triggering the unexpected, bond yields in Spain are still indicating the Eurozone crisis is alive and well!
I still believe the summer doldrums will pass and our energy stocks will recover. It is only a matter of time before risk money rotates back into our sector and the trigger may well end up being some form of stability in the EU Zone even if the respite is only temporary. Is this an opportunity to accumulate stars on sale? January will tell us!
Poland dreams of energy independence — through fracking
Have a Great Weekend!