The Euro Continues to Falter
The Euro sank to a new four-year low this morning over new concerns about the health of Europe’s economy. The European Central Bank reported that European banks may need to write off loans amounting to $240 billion dollars (subscription required ) for the next two years while the Centre for Economics and Business Research has warned Greek ministers that the only way Greece will recover from its current debt crisis is to drop the Euro for its own currency!
This move would prove disastrous for French and German banks which have funded much of Greeces debt. The Eurozones single currency policy will most certainly be put to test in the upcoming weeks.
For a rather humorous explanation of the current European debt crisis see the video below.