Investors Prepare For Euro Collapse: Currency's Days Seen Numbered -- Martin Hesse, Spiegel OnlineBanks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar's structure isn't in doubt.
Otmar Issing is looks a bit tired. The former chief economist at the European Central Bank (ECB) is sitting on a barstool in a room adjoining the Frankfurt Stock Exchange. He resembles a father whose troubled teenager has fallen in with the wrong crowd. Issing is just about to explain again all the things that have gone wrong with the euro, and why the current, as yet unsuccessful efforts to save the European common currency are cause for grave concern.
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My Comment: I agree that the future of the Euro is unsustainable. The reason why is simple .... the debt level for many of these European countries is just too high for there to be any political will to bring it down. Best to run away from it's obligations and hope that someone else will pay the bill .... which people who have money in the system are now expecting.
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