[quote user=beachbum]When everything looks bleak...that may be the time buy.
I hear of great deals in Greece & Syria. Buy in cash and wait it out .. not for the faint of heart and with deep local expertise & trustworthy contacts only.
Otherwise, the article was overly negative and highlighted what might happen.
Of course first Greece, then Spain, Portugal and Italy, perhaps Ireland will leave the Euro. That makes total sense. All those countries have abdicated their monetary powers to the ECB, controlled by Germany and France. A great benefit for N-Europeans, especially Germany, but at the expense of S-Europe.
How can they compete ? They could lower the currency and sell wine, hotel rooms, car manufacturing labour or olives at far lower prices and have a humming economy. But they can't anymore. N-Europeans benefit at S-Europeans expense. Lutherans 1 vs Catholics 0. Call it what you may, but the Euro zone will split - as the alternative of a total top-down driven European democratic system will not happen. The earlier politicians and citizens will realize it the better.
So, don't buy that Greek Island quite yet. Buy it in Drachma in 2014 or so, then wait for the Greek currency to appreciate and the the economy grow!
That's why I do not invest in Germany, as the Euro will further deteriorate. Then, once the S-European neighbors are gone from Euro, wait for the Euro to strengthen. Maybe by 2014 or 2015.
Imagine Mexico, US and Canada having one currency, the North American $. Mexico's industry and tourism would suffer tremendously, and Canada would have an even lower unemployment rate.
Mexican peso is what, 14 peso per US $ .. used to be around 9 or 10 .. a 40-50% loss of purchasing power .. that is what will happen to the Greek Drachma and Italian Lira and Spanish peseta when they are re-introduced, and their pain will be over while N-Europe's pain will start then due to a strengthening currency and far lower exports.