'The Euro Crisis For Dummies' Extract: 10 Main Lessons

David Cameron

The Huffington Post UK   First Posted: 15/02/2012 14:39 Updated: 15/02/2012 16:07

The euro crisis is one of those topics you need to have an opinion on, lest a pub conversation take a series turn and leave you mute and embarrassed.

Unfortunately, global economics is not a topic many of us have much time to tuck into properly – and there’s no shame in that.

The ‘… For Dummies’ series – those of the bright yellow covers we still somehow associate with IT nightmares – have decided to step into the breach with their latest title The Euro Crisis For Dummies.

Written by UK financial expert Julian Knight, the book does what it says on the tin: makes the world’s latest fiscal disaster seem a little less scary (as a subject at least) by explaining, in simple terms, what it’s all about, how it happened and what just might happen next.

But if, like us, you’re less of a Euro Crisis dummy and more of a complete Euro Crisis numbskull, you might want to click on the gallery below where we’ve taken the ten most salient points from the book and made them even easier to digest.

Ireland was the first to go:
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The Irish had a booming economy throughout the 1990s and 2000s, but much of it was built on massive levels of personal debt and an overheating housing market. So when the global financial crisis arrived, the Irish were particularly hard hit and the country rapidly fell into recession. As a result, the UK and wealthier members of the Eurozone have bought Irish government debt to help support the troubled Emerald Isle.

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12:16 AM on 02/21/2012
Th­e Question of the UK being split is a non-starte­r.The UK will always be a union.It may change according to the needs of the four members.In fact we recommend regional devolution in England as the only way the people can take back many powers that have been eroded over the past 60yrs.
For once D.Cameron is on a winner(I don't often say that!!)He should leave the NHS & WRBill alone & apply himself to Reforming the banks,HofC­ommons,& making the Coaltn stronger.
12:16 PM on 02/16/2012
British Senior Citizens Partnership keep a full explanation of the Econ. Crisis on our website.The Question of the UK being split is a non-starter.The UK will always be a union.It may change according to the needs of the four members.In fact we recommend regional devolution in England as the only way the people can take back many powers that have been eroded over the past 60yrs.
For once D.Cameron is on a winner(I don't often say that!!)He should leave the NHS & WRBill alone & apply himself to Reforming the banks,HofCommons,& making the Coaltn stronger.
05:55 AM on 02/16/2012
Tax the crap out of any and all transactions Hedge funds make.
They are parasitic in nature and are about to kill the host.
As anyone knows when resistance is low parasites will invade, then thrive and destroy something great.
No matter how hard a boil demands or wants to be known as a beauty spot trust me, it will always be a boil.
Amazing what a country can achieve when runs its own race.
By refusing to blindly listen to parasitic international money men and their self-serving waffle, Germany has never been stronger.
05:15 PM on 02/15/2012
Page 5 Hedge funds trade such huge amounts of shares and currencies that their constant selling and buying can create panic and uncertainty on global markets
Interestingly market experts say that constant selling and buying reduces make risk management more efficient and flexible especially at banks and allow a more efficient distribution of individual risks and a related reduction of aggregate risk within an economy.
http://www.dbresearch.de/PROD/DBR_INTERNET_EN-PROD/PROD0000000000081397.PDF

Panic appears when previously opaque market information becomes suddenly transparent and there is a rapid adjustment. Derivatives allow transparent markets to follow information changes.