Is the euro zone at risk of breaking apart?

In July 2012, the European Central Bank's then-president Mario Draghi gave a speech that is now credited with saving the euro. "The ECB is ready to do whatever it takes to preserve the euro, and believe me, it will be enough," he said at that time.

Greece was in the middle of a debt crisis, and economic instability was spreading to other parts of the euro zone. The ECB, the central bank for the countries that have adopted the euro, had to act.

Ten years later, the euro and the euro zone are still intact. But one of the core issues at the heart of the crisis still remains. In fact, it rears its head every time the region comes under economic pressure.

The crux of the problem in the euro zone is this, according to Angel Ubide from hedge-fund firm Citadel: "Two identical firms or households have differing financial conditions or funding conditions, just as a result of the country they are located in. So, in that sense, your passport becomes a major determinant of your funding conditions."

"Of course, there should be differences, but when the differences are very big, and then we can say that monetary policy has been fragmented," he added.

So, is the euro zone at risk of breaking apart? Watch the video to find out more.

#CNBC #Euro #Eurozone
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[Ryanjcanfield]

Would this be considered a bad moment to enter the market given the recent price action, inflation, and state of the economy? Funny how I wanted to sell the Dollar and buy Euro

[jebbo-cl]

people have been saying this every year since the Euro was launched

[kaylawood]

Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[alexsteven.m]

Stocks are falling and bond yields are rising, but markets still don't seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $150, 000 stock portfolio, what's the best way to take advantage of this bear market?

[JA-pnji]

"Situation is much stronger now...", famous last words.

[davidnhc]

When a banker or politician says believe me…..

[davidnewbury]

I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460, 000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused, I'm a newbie and I'm open to ideas.

[yeah_reee]

as a greek i think that our economy status is much better than it used to be in 2009. That year the level of uncertainty was extremely high, the salaries went for a sky diving but today we managed to stabilize the situation, but we still have a very very long way to go.

[pn]

4:58 I think it’s important to remember that the austerity policy was democratically rejected by the Greek people in a referendum, but then autocratically enforced by the European authorities. (In order to save the financiers.)

[road_rider]

Betteridge's law of headlines: Any headline that ends in a question mark can be answered by the word no.

[gerhard]

The Euro will survive for as long as Germany is willing and able to underwrite it.

That is as much a political question as it is an economic one.

France gave Germany the single currency lemon in return for it not opposing German reunification and Germany has made lemonade ever since.

Hence the 2008 Greek bailout wasn't some huge act of Franco-German generosity, they were effectively a backdoor bailout of French and German banks who had lent recklessly to countries like Greece with very little monies subsequently actually going to the Greek state.

[alumnia]

It’s been 20 years news have been calling the “end of the euro” … stil there.

[EVP]

When they explain how bonds go up and down in price in relation to credit rating, they neglected to add that it’s not just credit rating. There are other factors, such as current coupon rates being offered on the primary market. As rates go up, the price of existing bonds go down, and vice versa. The further away the maturity date, the more volatile the reaction to these changes.

[devanman]

Every year its the end of the Euro or E.U crap. I can tell you now as someone living in Europe with whats going on now the bond among almost all E.U members and the need for the Euro is only getting stronger.

[VenoStuff]

One huge problem is that countries are not equal in EU.

[naojp]

💶 is convenient for travelers, but it seems to be troublesome for some countries not to be able to decide interest rates by their own. Financial matters are different in each country

[loritahinge]

<<I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN...I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED... CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?

[robinandthedog]

That was when Germany was the strongest EU country and could help support the Southern countries, this is changing now very rapidly and with both NordStream pipes cut off, the outlook is rather grim.

[playerish]

To be an enemy of America can be dangerous, but to be a friend is fatal from Henry kissinger

[wiktorjachyra]

This is the major problem with the euro. It comes with great economic opportunities, but the fact that one country can risk the currency of dozens of countries is outrageous