{"id":2232,"date":"2011-11-20T14:43:19","date_gmt":"2011-11-20T19:43:19","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=2232"},"modified":"2011-11-20T14:43:19","modified_gmt":"2011-11-20T19:43:19","slug":"debt-crisis-contagion-the-euro-zones-deadly-domino-effect-spiegel-online-news-international","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/20\/debt-crisis-contagion-the-euro-zones-deadly-domino-effect-spiegel-online-news-international\/","title":{"rendered":"Debt Crisis Contagion: The Euro Zone&#8217;s Deadly Domino Effect &#8211; SPIEGEL ONLINE &#8211; News &#8211; International"},"content":{"rendered":"<p>The main problem of a Greek exit from the euro zone is not necessarily the direct impact on banks. I believe our government when they say that they would be able to get that under control. The real problem is the next domino. The crisis will spread unchecked to Italy. If Greece leaves the euro zone, then owners of Greek bonds will lose their entire investment. At best, the Greeks would pay them back a small part of their investment &#8212; in almost worthless drachmas.<\/p>\n<p>So what kind of investor in his or her right mind would purchase Portuguese, Spanish or Italian sovereign bonds in this kind of situation? Not even a yield of 7 percent can make up for all the risk that Italy won&#8217;t be able to pay back its debt. As things now stand, Italy&#8217;s debt accounts for 120 percent of its annual GDP, growth is close to zero and the country is currently slipping into a deep recession. In fact, it&#8217;s a matter of mathematical inevitability that Italy won&#8217;t be able to service its loans if interest rates on its sovereign debt don&#8217;t fall. Granted, there have to be reforms. But reforms don&#8217;t resolve an acute debt crisis. We&#8217;ve already learned that lesson from other crises.<\/p>\n<p>via <a href=\"http:\/\/www.spiegel.de\/international\/europe\/0,1518,798695,00.html#ref=rss\">Debt Crisis Contagion: The Euro Zone&#8217;s Deadly Domino Effect &#8211; SPIEGEL ONLINE &#8211; News &#8211; International<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The main problem of a Greek exit from the euro zone is not necessarily the direct impact on banks. I believe our government when they say that they would be able to get that under control. The real problem is the next domino. The crisis will spread unchecked to Italy. If Greece leaves the euro &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/20\/debt-crisis-contagion-the-euro-zones-deadly-domino-effect-spiegel-online-news-international\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Debt Crisis Contagion: The Euro Zone&#8217;s Deadly Domino Effect &#8211; SPIEGEL ONLINE &#8211; News &#8211; International&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[33],"tags":[962,1083,1295,1547,1614,1919,2720,3194],"class_list":["post-2232","post","type-post","status-publish","format-standard","hentry","category-uk-europe-countries-regions","tag-debt-crisis","tag-domino-effect","tag-euro-zone","tag-germany","tag-greece","tag-italy","tag-portugal","tag-spain"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Debt Crisis Contagion: The Euro Zone&#039;s Deadly Domino Effect - SPIEGEL ONLINE - News - International - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Debt Crisis Contagion: The Euro Zone&#039;s Deadly Domino Effect - SPIEGEL ONLINE - News - International - the patient investor\" \/>\n<meta property=\"og:description\" content=\"The main problem of a Greek exit from the euro zone is not necessarily the direct impact on banks. I believe our government when they say that they would be able to get that under control. The real problem is the next domino. The crisis will spread unchecked to Italy. 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Lazear: The Euro Crisis\u2014Doubting the &#8216;Domino&#8217; Effect &#8211; WSJ.com","author":"ColinTwiggs","date":"October 31, 2011","format":false,"excerpt":"Both in Europe and the U.S., structural weakness stems from government excess and slow economic growth. More important than stemming contagion is reversing the policies that created the problem in the first place. via Edward P. Lazear: The Euro Crisis\u2014Doubting the 'Domino' Effect - WSJ.com.","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3848,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/03\/17\/not-out-of-the-woods-yet-despite-progress-euro-crisis-is-far-from-over-spiegel-online-news-international\/","url_meta":{"origin":2232,"position":1},"title":"Not Out of The Woods Yet: Despite Progress, Euro Crisis Is Far From Over &#8211; SPIEGEL ONLINE","author":"Colin Twiggs","date":"March 17, 2012","format":false,"excerpt":"Christian Rickens: So has Greece been rescued and financial markets been tamed? Is the euro crisis a thing of the past? Unfortunately not. With their successes in the last few days, euro-zone politicians have done little more than bought themselves time. They must use this window to brace themselves for\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1897,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/14\/europes-economy-shows-weakness-wsj-com\/","url_meta":{"origin":2232,"position":2},"title":"Europe&#8217;s Economy Shows Weakness &#8211; WSJ.com","author":"ColinTwiggs","date":"November 14, 2011","format":false,"excerpt":"Italy was forced to pay its highest interest rate since the euro's creation to sell five-year bonds\u2014a sign of skepticism that new governments in Italy and Greece will be able to simultaneously boost economic growth and reduce high public-debt levels......Industrial production in the euro zone plunged 2% in September from\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1589,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/26\/euro-zone-talks-hit-roadblocks-wsj-com-2\/","url_meta":{"origin":2232,"position":3},"title":"EU Forges Greek Bond Deal &#8211; WSJ.com","author":"ColinTwiggs","date":"October 26, 2011","format":false,"excerpt":"French President Nicolas Sarkozy said after the marathon negotiating session that the leaders had reached agreement with private banks on a \"voluntary\" 50% reduction of Greece's debt in the hands of private investors. He also said they had agreed to expand the firepower of the European Financial Stability Facility, the\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3293,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/01\/15\/agenda-greek-situation-is-most-serious-of-latest-euro-crisis-wsj-com\/","url_meta":{"origin":2232,"position":4},"title":"Agenda: Greek Situation Is Most Serious of Latest Euro Crisis &#8211; WSJ.com","author":"ColinTwiggs","date":"January 15, 2012","format":false,"excerpt":"Friday provided the markets with two reminders that the euro crisis hasn't gone away. The decision by Standard & Poor's to downgrade nine members of the euro zone, including France being stripped of its Triple-A rating and Italy being downgraded to Triple-B, had been widely expected. But the collapse of\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2293,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/23\/fate-of-euro-may-hinge-on-italian-savers-nytimes-com\/","url_meta":{"origin":2232,"position":5},"title":"Fate of Euro May Hinge on Italian Savers &#8211; NYTimes.com","author":"ColinTwiggs","date":"November 23, 2011","format":false,"excerpt":"Compared with debt-saddled Greece, Spain and Ireland, Italy is much less reliant on foreign investors to finance its debt. And more so than in any other euro zone country, Italian citizens have been active buyers of government debt, with such bond holdings representing 10 percent of household assets. So far,\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/2232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=2232"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/2232\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=2232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=2232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=2232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}