4 Ways the Euro Could Fail

With every passing day, there is increased chipping away of support for the Euro. Please consider Linde CEO says Germany should mull euro exit Germany should consider leaving the euro if efforts to impose fiscal discipline upon indebted euro zone countries fail, the head of industrial gases firm Linde told German weekly paper Der Spiegel.

Elliott R. Morss submits:Congress, along with the more than 2,500 financial sector lobbyists, is preparing new legislation which they hope will prevent any further financial meltdowns. Unfortunately, the lobbyists’ interests will keep a good bill from emerging. But what would a good bill include, and just as importantly, not include?Accurate RepresentationsSelling a financial product should be no different than selling a lawnmower or an electrical appliance.

Back in late April, I participated in panel "Europe at the Crossroads: The Euro Crisis and the Future of European Integration" (video). There're two graphs from my presentation I'd like to highlight, as they remain relevant even as the eurozone lurches into de facto recession [0].

Bloomberg reports European CEOs Move Cash to GermanyGrupo Gowex (GOW), a Spanish provider of Wi-Fi wireless services, is moving funds to Germany because it expects Spain to exit the euro. German machinery maker GEA Group AG is setting maximum amounts held at any one bank.

By Peter Boone and Simon Johnson In every economic crisis there comes a moment of clarity.  In Europe soon, millions of people will wake up to realize that the euro-as-we-know-it is gone.  Economic chaos awaits them.

Realization the Eurozone is no longer tenable is at long last recognized. In fact, "intense discussions" have been underway for months but are just mow admitted to by senior EU officials.Bloomberg reports U.S. Stocks Extend Declines on Concern Nations May Exit EuroU.S. stocks extended declines following a report that German Chancellor Angela Merkel’s party wants to make it possible for European nations to exit the euro area.

By Simon Johnson In the deafening cacophony of Washington-based voices on the debt ceiling, it is easy to miss a potentially more significant development.  There is growing bipartisan interest in tax reform, including changing the corporate tax system to make it more sensible – and a bulwark against financial sector instability.

By Simon Johnson American officials are annoyed and deeply skeptical – not thinking that this will amount to anything.  But the future has finally arrived – or perhaps its arrival has just been announced – in the form of the European Monetary Fund.