Collapse of Euro a "Very Likely Scenario" – Spiegel

The Euro financial crisis is on the tips of tongues for many people; I was chatting with a friend three weeks ago, and she is convince the Euro will calapse.

Global Macro Monitor

We posted yesterday that the Germans are starting to think out loud about the breakup of the Euro.  Here’s an excerpt and chart on the economic aftermath of a Eurozone split from the Der Spiegel piece,

Collapse of Currency a ‘Very Likely Scenario’

Investment experts at Deutsche Bank now feel that a collapse of the common currency is “a very likely scenario.” German companies are preparing themselves for the possibility that their business contacts in Madrid and Barcelona could soon be paying with pesetas again. And in Italy, former Prime Minister Silvio Berlusconi is thinking of running a new election campaign, possibly this year, on a return-to-the-lira platform.

Nothing seems impossible anymore, not even a scenario in which all members of the currency zone dust off their old coins and bills — bidding farewell to the euro, and instead welcoming back the guilder, deutsche mark and drachma.

It would…

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