From ft.com via Drudge re: Eurozone break-up


“We’ve started thinking what [a break-up] might look like,” Andrew Morgan, president of Diageo Europe, said on Tuesday. “If you get some much bigger kind of ... change around the euro, then we are into a different situation altogether. With countries coming out of the euro, you’ve got massive devaluation that makes imported brands very, very expensive.”

Executives’ concerns are emerging as eurozone finance ministers weigh ever more radical options to tackle the sovereign debt crisis, including the possibility of funnelling European Central Bank loans to struggling countries via the International Monetary Fund.

Car manufacturers, energy groups, consumer goods firms and other multinationals are taking care to minimise risks by placing cash reserves in safe investments and controlling non-essential expenditure. Siemens, the engineering group, has even established its own bank in order to deposit funds with the European Central Bank.

I'm wondering, and worried, how this could affect my Jan build/Feb delivery 991. Could the price increase dramatically on me?? Will the factory massively scale back production??

These seem very uncertain times.

 

i live in germany and i can tell you, no need to worry at all!
at the moment no country is forced to leave the Euro, except for maybe greece but greece is unimportant economically.

 

i wonder if you could pay Porsche now as a FX hedge....

 

I wouldn't fret about it.

 

No worries here. They will sort it out.

 

Wow, that's trusting the idiots that put a rag tag group of countries with vastly different per capita GDPs into one currency that buoyed the credit worthiness of the less productive members on the backs of the more credit worthy member nations (France and Germany) who in turn were stupid enough to lend money to those same less productive nations (that never had the ability and possibly even the desire to repay the debt and who were credit worthy soley as a result of now being under Euro)... to sort it all out.

God Bless Thatcher for keeping Britain out of that circle jerk of Continental idiocy!!

 

The Greeks are the smartest of the whole bunch. They took the money that they couldn't repay knowing that the only way to force repayment was with tanks. The risk of that was minimal, because NATO has more teeth than the EU. So Greece's biggest risk was to be kicked out of the EU and go back to where they came from with more money in their pockets. The Drachma will be severely devalued as compared to the Euro, making Greece as a tourist destination and Greek products (whatever they might be: goat cheese and leather coats) much more attractive to EU consumers. So the Greeks received hundreds of billions that they won't ever have to repay and the EU members that gave them the money will be spending their Euros in Greece on vacation wearing new Greek leather coats eating goat cheese and drinking ouzo. Damn those slick French and German bankers are really smart!

 

My theory is that there are people way richer then myself that would stand to lose a lot more then me if the world currency markets imploded. There is also a Hyundai if things don't work out..

 

Sure. It was all meticulously planned by the Greeks. The Greek people are feeling very satisfied with their lot now and feeling very smug about how they got one over on the rest of Europe.

But seriously, where did you come up with this? Have you seen how bad things are over there? It is not pretty.

 

+1, the greek suffer the most and their future is as dark as a coal mine while the so called "elite" and the powerful in greece, i`d call them criminals and thieves, destroyed greece over decades financially and economically by paying no taxes, building up a system of massive corruption and in the end transferring all of their "dirty" money to switzerland and germany.
and now the common people and the generations of greeks to come are the ones paying the bill, as always!

 

No the Greeks didn't mastermind a thing. They were just smart enough to know a fool and his money are soon parted.

Their culture has been around forever and has been stagnant forever. Yes political corruption probably exits at the highest level in Greece and in a stagnant growth economy, it becomes a "who you know" as opposed to "what you know" world. So at the upper echelons of Greece when the very bright, egotistic German and French bankers showed up and lent a half trillion dollars to them based on what must have been a very if not overly optimistic model, the Greeks knew what to do: take the money. How else would they be able to enrich themself to such a level?

On the pessimistic side, the Greeks did it so huge amounts of graft could be siphoned off to line the pockets of the powers that be. On the more hopeful model, the Greeks did it to create economic stimulus and jobs in the economy. I don't know which, but maybe a combination of both.

One thing is for sure the Greeks weren't the ones who had to approve and accept the repayment models. Being an old stagnant economy, where the largest employer with the best paying jobs is the government, the Greeks were smart enough to know this type of opportunity doesn't grown on olive trees and doesn't come around very often, so they took the money. A half trillion Euros... LOL!

Again remember nothing fundamentally had changed in Greece’s ability to repay; only their credit worthiness had increased because of the strength of the lending countries.