Greec Debt Crisis on World Market:
Greece went into a "debt binge" ( which means they spent money even though they knew they couldnt pay it back), in the last decade. It then crashed in late 2009. It now has turned into an economic crisis and is threating Europes recovery, the euro, other areas of the world.
Since 2009 Greece has relied on a package of 110 billion Euros or 152.6 billion dollars in the US. Which was agreed to buy its richer neighbors in May of 2010. Greece then started cutting the pay of its public workers by 10 percent.
The US's Economy is starting to turn around, although rather slowly. In the last three weeks less Americans applied for jobless benefits and more have stayed current on their mortgage payments since 2006.
This indicates that the US is slowly recovering.
ALthough the Problems in Greece lead to horrible outcomes. NOT just in the US but everywhere. Especially the World Stock Market.
Like:
• Europeans will spend less money on American products in European economic zone countries agree to bail out Greece. Which will cause job losses in the US.
• If a full default does occur, then other countries like Spain and Portugal could also default. Which could lead to tons of defaults. This could seriously affect the European Zone, and would also send "shock waves" all the way to wall street.
• The stock market fell sharply on Monday and can and might keep falling, due to Europe not resolving the debt crisis which is causing tension for the world.
I think The European Zone Countries help out Greece, but should not completley bail them out. And just spend some money. Because when people have to pay more for taxes for the debt people don't spend money. When they dont spend it they save it. When money isn't spent buisnesses shut down. When buisnesses shut down people get laid off, and it just keeps tumbling downward from there. And that is why this is such a major crisis for everyone, everywhere, and needs to be taken care of.
http://www.msnbc.msn.com/id/44748412/ns/business-world_business/
• http://abcnews.go.com/Business/greek-debt-default-affect-american-economy/story?id=13858070
Comments
Good choice of topic! Well done!