Posts tagged "debt crisis"

Why is greece in a debt crisis?

Im trying to finish homework, its late, help me out? Explain this is simple terms.

Also answer theses:
What is the impact of this crisis on America?

What are some arguements about this topic?

thanks

Sorry to answer this question late.

Here is a link to an article in the FT today which will give you the answer about Greece:

http://www.ft.com/cms/s/0/a0574c54-046e-11df-8603-00144feabdc0,dwp_uuid=2b8f1fea-e570-11de-81b4-00144feab49a.html?nclick_check=1

The problems in Greece are slightly different from countries such as the USA and UK in that these countries are suffering from banking/financial institution losses which have precipated a shortage of liquidity worldwide. Greece has been overspending on its public sector and the worries are that it can not now service that debt because of the economic downturn generally and shortage of capital in the global economy -i.e. it can’t borrow any more. So, in many ways Greece is collateral damage in the financial crisis.

If you look at the Ft article-there is comment that Greece has been fudging its figures- so has everyone else. The losses still in the banking mess have still not been fully accounted for (some estimates suggest that only 50% has been acknowledged). So a lot of countries are in an even worse situation but have buried their heads.

Incidentally, there is great fear in the UK that our sovereign debt will be downgraded by the rating agencies – that’s really bad. It’s just slow release of information -that’s all.

What can be done to mitigate the current Eurozone debt crisis on Africa?

(www.abndigital.com)
Africa appears to have weathered the global economic crisis to some extent. However, what can be done to mitigate the current Eurozone debt crisis on Africa?

Godfrey Mutizwa spoke with Jean-Phillippe Stijns, an Economist with the OECD, at the African Development Bank’s annual meeting in Abidjan, Ivory Coast.

Duration : 0:4:38

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How does the Debt Crisis effect people in Developed countries?

Are you referring to the Debt Crisis in the 1980s or the current Global Financial Crisis (2007 – present)?

How was the 1980s debt crisis resolved in Argentina?

Who told you it was resolved?. The IMF and the World Bank give us some more time. We could not pay. We got into default status in 2001. The government felt. Then the new government said that we are going to pay when we can, and as we can.

Is the Republican philosophy of deregulation and tax cutting what caused the economic collapse?

The last 8 years we gave massive tax cuts to the wealthy and deregulated the financial industry causing an economic bubble in the stock market, commodities, housing, etc. Doesn’t it make sense to bring back tax rates to pre-Reagan era and keep regulations in place so that growth is moderate and stable??

And yes, I blame Clinton for a lot of things too….but doesn’t mean you Republicans and your tax cutting/deregulation philosophy get a free pass.
The banks weren’t forced to give out sub-prime loans, they were handing them out like candy! Come on Republicans, don’t try to distort the situation here. The reality is that if the loaning institutions were forced to give out loans to qualified applicants, we wouldn’t be in this mess.. This is an example of where REGULATIONS are GOOD.

I think a lot of people are to blame. However, Clinton left the U.S. in a surplus. republicans, you can look it up if you don’t believe me. Bush drove our national debt to record high with trillions of dollars in debt with China and 10 billion/month to pay for war in Iraq. I do blame republicans more than democrats, and I’m republican but I had to vote for Obama. The tax cuts did not help the economy whatsoever. My republicans blame it on the media even though statistics show the facts.

Greece Debt Crisis Due to Speculation or Spending?

Independent analyst Mike Wilson on the causes of Greeces debt crisis and the European Commission’s plan to create a crisis fund.

Duration : 0:2:51

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