monday, page-23

excellent post from spott, hit on Germany's conundrum and implications of Euro withdrawal.

Germany wanted the Euro in the first place to hold it's currency down because it's an exporting country. Unfortunately went badly wrong for other countries (understatement).

So now it can either:
a) try to hold it together and keep on paying out for bailouts for ever. or
b) go back to a DM likely to rocket and become uncompetitive.

Probably euro is destined to fail, was too idealistic in the first place. imo Greece would be better off back with the depreciating Drachma and "restructured" debt, at least it would be flooded with German tourists again looking for cheap gyros and they could move on.