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Kamen Rider

Euro banks want dollars

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Yeah well if Europe goes in the tank then so does everyone else. That's the "lovely" thing about globalism I suppose. Here in New York everyone LOVESSSS tourists, so now our economy is basically dependent on them, Europeans especially, so if Europe goes further into a recession, New York City and other parts of the US will be in the sh*t. :(

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Yeah well if Europe goes in the tank then so does everyone else. That's the "lovely" thing about globalism I suppose. Here in New York everyone LOVESSSS tourists, so now our economy is basically dependent on them, Europeans especially, so if Europe goes further into a recession, New York City and other parts of the US will be in the sh*t. :(

 

I'm afraid it's the other way around. The current downturn came to Europe after it had reared its ugly head in America. When countries like Ireland or Greece were having financial problems, there was talk about it, but it did not contribute to layoffs and welfare increases in our country (those things did happen, but not because of European economic conditions). When we had a soverieign debt crisis in August, European investors and traders were basically wetting their pants, because they knew that if we went down, they would soon follow. I would know because I was in Europe at the time and was watching the reports closely. In any case, European tourists aren't everything. A lack of them would make a dent, but not a hole.

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I'm afraid it's the other way around. The current downturn came to Europe after it had reared its ugly head in America. When countries like Ireland or Greece were having financial problems, there was talk about it, but it did not contribute to layoffs and welfare increases in our country (those things did happen, but not because of European economic conditions). When we had a soverieign debt crisis in August, European investors and traders were basically wetting their pants, because they knew that if we went down, they would soon follow. I would know because I was in Europe at the time and was watching the reports closely. In any case, European tourists aren't everything. A lack of them would make a dent, but not a hole.

 

I've lived in Europe as well, and Europe is extremely important to the U.S. What you fail to realize is how intertwined everybody is economically because of how global all of the economies have become. The link below is a perfect example of how dependent our economy is on Europe's well being.

 

http://news.yahoo.com/europes-debt-crisis-drags-down-us-stock-futures-120926079.html

 

In sum, Europe needs us just as much as we need Europe and believe me, New York City would indeed SUFFER if Europe is hit harder. Tourists spent $31 billion dollars here in New York City in 2010. See link: http://cityroom.blogs.nytimes.com/2011/01/04/tourism-hit-record-high-in-2010/

 

Tell me what else do we have to drive the economy here besides tourism and Wall Street? The manufacturing base that we had here is just about dried up, so there isn't much else to depend on.

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If the euro keeps getting stronger that will be problem for both economy's, I mean it good that European tourists come here to spend because of the weak dollar and European buyer buy stuff throw U.S online shops but it worse for business in Europe because U.S can not afford goods from there and I wish I can go to U.K or Germany in my lifetime but with euro being so strong that is less of a possibility.I wish that both Currency can be balanced so that both economy's can succeed.

Edited by MTARegional Bus

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http://money.cnn.com/2011/09/15/markets/ecb_central_banks_liquidity/index.htm?hpt=hp_t2

 

 

too bad Missingo got booted, cause here's a nice "I told you so". Dow is currently up 162.95 acourding to my desktop widget.

 

It would be nice if it goes back to the days the dollar = 1.25 euros... I was kinda suprised given how many countries have gone bankrupt that the euro has taken this long to decrease in value.

 

Also the Canadian Dollar is almost even with our dollars, though it is slightly higher than ours.

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What some of both sides have said here is true.

 

Europe is highly dependent on a healthy American economy because they invest so heavily over here. This is a problem with global banks. Many European banks do business over here, particularly as investment houses (RBS, Credit Suisse, Societe Generale, BNP Paribas, etc.)

 

HOWEVER, America is highly dependent on Europe for exports and tourism.

 

This is a huge problem with globalization and a big reason I don't like it. Interconnectivity of economies drags everyone down. The only nation that will come out ahead in all this unless the US and Europe get it together is damn China, which seeks to be THE dominant economic nation. This will have dire consequences for the middle and working classes in ALL of Europe and North America if it comes to pass.

 

Europe and the US have to find a way to collectively get out of debt, foster business growth within their borders, and limit the ability of "cheap" Chinese and Pakistani companies from underselling their products. This is the "gentleman's agreement" that must exist among developed nations (note: not a trade agreement!) that I referenced in the other thread.

 

Them flocking to US dollars only highlights a potential decline in the Euro, which has the effect of assuring the easily frightened that the US dollar will remain the global currency reserve. However, that's a double edged sword because under the current incompetent congress, all that seems to mean is that it's OK to continue weakening the dollar to push pro-business and pro-wealthy legislation that costs money we don't have through while simultaneously crying that things they've already raided like social security and the post office are insolvent and should be discontinued (which obviously I disagree with).

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What some of both sides have said here is true.

 

Europe is highly dependent on a healthy American economy because they invest so heavily over here. This is a problem with global banks. Many European banks do business over here, particularly as investment houses (RBS, Credit Suisse, Societe Generale, BNP Paribas, etc.)

 

HOWEVER, America is highly dependent on Europe for exports and tourism.

 

This is a huge problem with globalization and a big reason I don't like it. Interconnectivity of economies drags everyone down. The only nation that will come out ahead in all this unless the US and Europe get it together is damn China, which seeks to be THE dominant economic nation. This will have dire consequences for the middle and working classes in ALL of Europe and North America if it comes to pass.

 

Europe and the US have to find a way to collectively get out of debt, foster business growth within their borders, and limit the ability of "cheap" Chinese and Pakistani companies from underselling their products. This is the "gentleman's agreement" that must exist among developed nations (note: not a trade agreement!) that I referenced in the other thread.

 

Them flocking to US dollars only highlights a potential decline in the Euro, which has the effect of assuring the easily frightened that the US dollar will remain the global currency reserve. However, that's a double edged sword because under the current incompetent congress, all that seems to mean is that it's OK to continue weakening the dollar to push pro-business and pro-wealthy legislation that costs money we don't have through while simultaneously crying that things they've already raided like social security and the post office are insolvent and should be discontinued (which obviously I disagree with).

 

 

The problem is everyone just assumes that the U.S. doesn't need anything because we're #1, so we can't be dependent on anyone.... Nothing lasts forever and perhaps the arrogance is folks is part of the reason we're in this mess now.

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