End Times and Current Events

General Category => Europe => Topic started by: Psalm 51:17 on June 14, 2012, 10:36:38 am

Title: Commentary: How tiny Finland could bring euro crisis to end
Post by: Psalm 51:17 on June 14, 2012, 10:36:38 am

Commentary: The crisis could go from ‘Spanic’ to ‘Quitaly’ to ‘Fixit’


LONDON (MarketWatch) — The most pressing question about the euro crisis is also the hardest one for anyone to answer. It is easy to analyze why the single currency has gone so badly off the rails, pick apart the flaws in its construction, and identify the mistakes made in the endless bailout packages. But how will the saga eventually resolve itself?

No one can know for sure. There are so many actors on the stage and so many conflicting ambitions and pressures on each of them that every prediction has to be hedged with uncertainty.

But here’s how it might come to a head over the summer: a “Spanic,” followed by a “Quitaly,” followed by a “Fixit.” A fresh panic in Spain might be followed by rising demands for Italy to quit if it doesn’t get the same terms its fellow Mediterranean country has been offered, followed by a Finnish departure from the euro /quotes/zigman/4867933/sampled EURUSD +0.38%   that might finally bring the whole saga to a climax. It would be a rough ride — and you wouldn’t want to be holding many assets other than dollars or gold or possibly Swiss francs while it was playing itself out. But at least it might bring a resolution to the crisis.

This week, the news has been dominated by the bailout for Spain. It has become the fourth country to need some form of financial rescue, and it’s by far the largest. Almost a quarter of the euro’s 17 members have now needed outside help, and Cyprus will probably join the list soon. It is hardly a great record for a monetary experiment, which, let us remember, was meant to bring greater stability — not less.