From CNN.com
The issues leading up to the government financial crisis in Greece:
- Years of unrestrained spending
- Cheap lending
- Failure to implement financial reforms
- Huge national debt
Do these symptoms sound familiar? They should. For instance, just last week Congress and President Obama raised our national debt ceiling to $14,300,000,000,000. Our forcasted GDP for 2010 is about the same (±$14.5 trillion). Not since WWII has our national debt even come close to reaching our annual GDP. Pretty scary since we won't have the luxury of an EU bailout.
2 comments:
So, what is going to happen in Greece? Any chance of a society based on Austrian Economics?
The weaker countries in the EU are pushing for unity, while the stronger countries are thinking about expelling Greece from the EU. If the later happens, hold on to your hat! This is the EU's first real internal crisis, if their first reaction is expulsion, then the EU will look very weak.
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