Excellent Furthermore, I must add Berlusconi's inability to take a firm stand on Libya. At one moment he wants to shake hands the next he wants to fight.
Thank you Paddy ! Great Analysis ! Keep up the good work. Im just woundering... Where is the european central bank in all of this ? Can´t ECB support the Italian economy by buying Italian bonds ?. It seems that Italy and ECB´s Faith is some what correlated.
Nice try but a few problems with the description including whats been pointed out already related to sovereign vs non-sovereign currency. The bigger issue in your household analogy, however is that borrowing $1 million at 12.5% interest with a 100k annual income does not happen on this planet, let alone in Europe.
Bob Tatar the whole reason the financial crisis happens in the US was that these kind of loans actually existed. People didn’t even have to have an income to buy a house that expensive.
If Jake is underwater, what he would have to do is move out of his house, rent it out, and rent a place for himself with much lower payments. How would this extrapolate to a country's economy?
12% over 1million is 120,000 :) No way was our hero able to take 1Mil load initially if his income was below the yearly payment. Aside from that, great vid!
Not bad, this is agood description of how it happende, but... fundamentally we have one problem and it's named EURO. You can not overlook the fact that a Nation is NOT like Jake, as long as it has a Central Bank and a debt denominated in its own sovereign currency. It makes the difference between risking default or not. But OPS we don't have ability to issue our currency anymore... If we had a lender of last resort the Banks would not grab us by the balls like they're doing now. Also, the euro is an overpriced currency, we need a currency at least 20% lighter. We are better off doing our business with our currency as we did for decades, and to hell with all this EUROCRAP
well, that's not true, and sadly your theory seems is being spread in Europe. In the video it was mentioned the advantage we got of taking part to eurozone: interests rates on debt were cut down. And what have our politicians done? they increase public spending in order to get votes, instead of making the system more competitive and able to face the new global challenges. What would happen if they had the monetary policy with a national central bank? Look at the Argentina, there is the answer
stefanobc1971 Since Euro for Italy can be seen bad in certain ways but good in another, the real problem is the actual politic system. It is a complete failure, we don't see changes and i'm quite sure we'll never see any in the immediate future (i talk as an Italian). I can assure you that what the italian government is doing right now is cutting social services instead of finding a way to boost the economy. Plus the mafia is growing every single day and it controls more and more.
no way folks. giving up one's ability of deficit spending can't be a win. as a matter of fact, the euro will disappear and we will be surprised like "damn, wher's the euro?!" because it is wrong, just wrong. I do hope it will happen very soon
It's completely fake. We have a big debt but there are other countries with much more high debt, like Japan and they don't have any problems for the simple reason that they can still print their currency. The problem of Italy started with Euro, we lost our skill to print money and to finance our own business and we became slaves of the decisions of European Central Bank, who decide everything now. Moreover, our old currency was Lira, the value of this currency was lower than the value of Euro, so when we started with Euro all of the prices doubled and we lost half of our savings. Moreover, we lost to be competitive in the export, with such high value currency! Than I can assure you that our politics don't do anything to help people and the help, that you claim there was for the Sounth of Italy, is completely fake.
destroy europe.. that sounds rather...dramatic?! greetings from Germany, we're still doing good ( too good actually, I realize that it is partially our fault that the south does so badly at the moment)
You are so creative Paddy. I love "your way" of teaching. Keep the video's coming please!
Love your videos paddy! easy to understand! Keep em coming
Great parallel. Love your short vids and analysis!
Thank you so much for posting, great video, more people should really know what's is going on!
Thanks to explain me, the problems of my country as nobody ever did.
Excellent
Furthermore, I must add Berlusconi's inability to take a firm stand on Libya. At one moment he wants to shake hands the next he wants to fight.
Thank you Paddy ! Great Analysis ! Keep up the good work.
Im just woundering... Where is the european central bank in all of this ? Can´t ECB support the Italian economy by buying Italian bonds ?. It seems that Italy and ECB´s Faith is some what correlated.
Thank you, Sensei!!
Great explanation. I think most of us drank enough in 2008. Time to re-gear the currency charts.
Italy is a Great Country. i Think Them Will Rise Again.
nicely explained , kudos
Can you do a presentation on market makers in stocks. And how they 'could' manipulate the market pls
Excellent video! Thank you
Nice try but a few problems with the description including whats been pointed out already related to sovereign vs non-sovereign currency. The bigger issue in your household analogy, however is that borrowing $1 million at 12.5% interest with a 100k annual income does not happen on this planet, let alone in Europe.
Bob Tatar the whole reason the financial crisis happens in the US was that these kind of loans actually existed. People didn’t even have to have an income to buy a house that expensive.
I think you can borrow 10 times he amount you deposit.
So if you save one year's income say 40k and deposit the 40k, you ll get a loan of 400k.
well explained !!!! Italy sells a lot of wine; so, you wont have to go far to get your drink !!!!
Well, German and Italian bonds were given the same ratings.
I NEED a drink!!
How are you going to get that drink with zero credit?
Time for competing currencies; Win for Free Market, Loss for State coercion!
You're the man!!
If Jake is underwater, what he would have to do is move out of his house, rent it out, and rent a place for himself with much lower payments. How would this extrapolate to a country's economy?
Sounds really bad. I understand the yield going up to 7% this Wednesday caused the market to panic, but why did the market rally again?
Awesome!!
the people who lent the money would they not know its made no sense for italy to borrow at same rate as germany?
I need glasses
Buy spark plugs !!
12% over 1million is 120,000 :) No way was our hero able to take 1Mil load initially if his income was below the yearly payment.
Aside from that, great vid!
can you do brexit???
Not bad, this is agood description of how it happende, but... fundamentally we have one problem and it's named EURO.
You can not overlook the fact that a Nation is NOT like Jake, as long as it has a Central Bank and a debt denominated in its own sovereign currency. It makes the difference between risking default or not. But OPS we don't have ability to issue our currency anymore... If we had a lender of last resort the Banks would not grab us by the balls like they're doing now.
Also, the euro is an overpriced currency, we need a currency at least 20% lighter.
We are better off doing our business with our currency as we did for decades, and to hell with all this EUROCRAP
well, that's not true, and sadly your theory seems is being spread in Europe. In the video it was mentioned the advantage we got of taking part to eurozone: interests rates on debt were cut down. And what have our politicians done? they increase public spending in order to get votes, instead of making the system more competitive and able to face the new global challenges. What would happen if they had the monetary policy with a national central bank? Look at the Argentina, there is the answer
stefanobc1971 Since Euro for Italy can be seen bad in certain ways but good in another, the real problem is the actual politic system. It is a complete failure, we don't see changes and i'm quite sure we'll never see any in the immediate future (i talk as an Italian).
I can assure you that what the italian government is doing right now is cutting social services instead of finding a way to boost the economy.
Plus the mafia is growing every single day and it controls more and more.
no way folks. giving up one's ability of deficit spending can't be a win. as a matter of fact, the euro will disappear and we will be surprised like "damn, wher's the euro?!" because it is wrong, just wrong. I do hope it will happen very soon
stefanobc1971 from which chapter of your personal bible?
It's completely fake. We have a big debt but there are other countries with much more high debt, like Japan and they don't have any problems for the simple reason that they can still print their currency. The problem of Italy started with Euro, we lost our skill to print money and to finance our own business and we became slaves of the decisions of European Central Bank, who decide everything now. Moreover, our old currency was Lira, the value of this currency was lower than the value of Euro, so when we started with Euro all of the prices doubled and we lost half of our savings. Moreover, we lost to be competitive in the export, with such high value currency! Than I can assure you that our politics don't do anything to help people and the help, that you claim there was for the Sounth of Italy, is completely fake.
no such thing as respecx or not, monex matrs not
the real problem of italy is just 1 word EURO
How can it be the problem? No one forced Italy to borrow so much money. And devaluing the currency is hardly the good thing for the people.
Although I adore you, I must say these explanation and analogy about Italy are just not right
This is from 2011 so a lot has changed since then
Where is Marx when you need him.... ?
destroy europe.. that sounds rather...dramatic?!
greetings from Germany, we're still doing good ( too good actually, I realize that it is partially our fault that the south does so badly at the moment)
is this guy kidding? what a joke of an explanation.