Euro

I recently came to realize that the page view rate of my blog was particularly high on those days that I talked about finance and stock market. Well, I know I should not be too serious about the number of people listening to my grumble, but, on the other hand, I believe even Joshua Bell would be keen for all measures that might attract more audience when he was playing violin in the rail station. (See http://vwswong.blogspot.hk/2012/05/appreciate.html)

************************

As to global economy, the hot topic recently is certainly Greece and Euro. For those who are not familiar with the story, the Greek government, as well as its entire banking system is heavily in debt. Money is urgently needed from the European Central Bank (which actually means from other Eurozone countries, notably Germany). The trade off is, in order to square the balance, the Greek government has to cut down drastically its expenditure, including social welfare and the salary of all government servants – a painful step for the Greek people, and a suicidal move for their politicians.

The very worry is, if the Greek government fails to settle the bill, it may be expelled from the Eurozone – a most severe earthquake in the history of Europe (if what happened in the States four years ago was a tsunami) that may shatter the basis of the European Union.

I consider this worry narrow-minded.

For doing away with Greece is a futile resuscitation – it does not eliminate the rest of the PIGS, which are all in hot water.

In my opinion, the country that needs to be expelled from the Eurozone is Germany.