Greenspan: European Union Doomed to Fail

[bobbyw24]

http://www.internetweekly.org/images/alan_greenspan_poster.jpg

The European Union is doomed to fail, at least as a monetary bloc, because the cultural differences between northern and southern countries are just too vast to allow for one monetary policy, says former Federal Reserve Chairman Alan Greenspan. "At the outset of the creation of the euro in 1999, it was expected that the southern eurozone economies would behave like those in the north; the Italians would behave like Germans. They didn't," he told CNBC.

http://www.moneynews.com/Headline/Greenspan-European-Union-Fail/2011/10/26/id/415725

[IDefendThePlatform]

I read the article. So Greenspan is basically saying (without actually saying it) that the Southern European countries needed to be able to debase their currency more quickly than the Northern countries so that they could pay off their huge debts? Wow.

Or maybe a better solution would be not to run up huge government debts and just have sound money? Just a thought...

[sevin]

How come they always say that the only two options are money printing or austerity? Why can't a country just declare bankruptcy? Seems like that would be less painful.