Words: Ashley Rigg
Published: 22nd November 2010
*Irish bailout signals a new era for overseas property
European stock markets are rallying this morning on the news the Irish government has agreed to an EU bailout.
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Source: Global edge
User Comments
Most invoices in Spain still quote the equivalent peseta!
Rather than a 2 tier Euro, I think Spain and Portugal will revert to the Peseta and Escudo respectively.
Malcolm Maxwell,
lifeontheluz.com
Perhaps not possible for a two tier euro, but it's certainly required.In the past Spain did this reqularly as soon as the tourist visitors dropped off a little currency was devalued and back they came. This is certainly whats required for Spain,Portugal and Ireland to kick start the economy
Anthony Duggan,
LiveMedCoast S.L.
It depends on whether you believe my analysis on not? A two tier euro is better than going back to individual currencies (transaction and transition costs).
The Spanish banking system is murky and is exposed to a property sector that is far from transparent. If one of the Spanish banks needed government help, Spain may have to go cap in hand to the EU. If i was a gambling man, I'd say this will be the catalyst.
Remember Black Wednesday when the Britain dropped out of the ERM? If enough people in the money markets believe a currency will fall, there is nothing anyone can do to support it.
Ashley Rigg,
Global edge
A 2 tier Euro...is this really going to happen?
geoff peters,
the property shop