The Repercussions to Average People After a Euro Melt-down
Will the common individual suffer if the euro ultimately falls? Basically the goods and services on hand that generally sold at bargain prices to continental purchasers when the said currency was a lot stronger will be a lot more expensive than before. Moreover, with the currency down many jobs might be lost in Britain simply because several major companies are solely relying on euro-denominated sales. If ever there would be significant turnarounds before the end of this year, British exporters would definitely lose the competitive grasp in Europe which in turn has several drastic consequences for the British economy and its neighbouring countries in the UK as well.
People owning pensions will be partly hit by the downfall of the euro. Although most pension funds are spread throughout a stock market exposure globally, investors should always keep a sense of perspective. Stock markets, as experts would generally believe to be highly resistant to ambiguity, hence renewed suspicions regarding the euro have been speculating investors such that share prices are forced down which resulted in severely hitting many pensions and IRAs of many major investors.
The downside however regarding the share prices could be relatively indifferent depending on the optimism or pessimism of investors. Although the reality in itself regarding the supposed doomed currency eventually will take its toll in the trading activities of many traders since the mechanisms holding the trading system is majority held by the euro, and if it will fall then basically it will break the entire system. In the light of stock market dominators bonds and IOUs will likely to increase in price (depending on the issuer), issuers can provide a relatively high and secured degree of security than shares. It is prudent to consider that bonds are not risk-free since no warranty is worth any more than the warrantor.
House prices would most likely be augmented as it is now an existing trend in London and will ultimately accelerate if and when the currency collapses. Those seeking real estate investments would rather build their own houses brick by brick in a stable economy rather than own a piece of estate of uncertain value in a tumbling economy.
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