Oh dear: Euro plunges as Spain’s debt downgraded

**OwlHoot** · 29 May 2010, 17:55

Originally posted by Doggy Styles View Post

Euro plunges as Spain’s debt downgraded

They've got no option - they have to devalue the peseta.

Oh wait, hang on...

I'm sure the EU has secretly been building up a vast war chest for years, to fund an EU military expansion and so on. That would explain the apparent laxity in their accounting. But now they'll have to blow it all propping up Mediterranean countries if they want the wretched thing to survive at all.

**scooterscot** · 29 May 2010, 18:03

The headline "Euro plunges as Spain’s debt downgraded" is as meaningful as a BMW double dutch instruction manual written by an Italian

Don't you realise the pound plunges hand in hand with the euro, I think the £ only made a slight gain against the euro for all the plunging it's being doing.

The point is, laugh at Europe all you want, we're still part of the union and the more Mr camoran tries to ignore that fact the bigger the our own plunge will be in the months to follow. true....

**Doggy Styles** · 29 May 2010, 19:24

The main point isn't that the euro "plunged", it's that Spain's credit-worthiness has been downgraded, which will increase their deficit, and being in the euro means they can't devalue and export or inflate to help get out of it.

**alreadypacked** · 29 May 2010, 21:07

See I told you Spain would fall. (can't do the link thing)

**Doggy Styles** · 29 May 2010, 21:11

Originally posted by alreadypacked View Post

See I told you Spain would fall. (can't do the link thing)

I believe you AP, don't worry about the link.

**SantaClaus** · 29 May 2010, 21:46

News is a lagging indicator, in other words when news is announced, unless it is a total shock it has more than likely been priced into the market.

Oh dear: Euro plunges as Spain’s debt downgraded