Global Economic Crisis » Greece http://www.economiccrisisblog.com Fri, 14 Oct 2011 19:36:25 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 The US economy and lessons from Greece http://www.economiccrisisblog.com/economy1/the-us-economy-and-lessons-from-greece http://www.economiccrisisblog.com/economy1/the-us-economy-and-lessons-from-greece#comments Thu, 11 Mar 2010 15:02:03 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=921 The US economy and lessons from Greece
There are many folks who say that Greece is too small an economy to make a dent on the US economy which straddles the world economy space like a colossus. While this is true, it goes without saying that there are lessons for the US economy from Greece, and it would be good for the US economy to pay heed to this. The problem is that like Greece, the US economy also has huge and increasingly mounting debt, that does not seem to show any signs of abating. The debt has grown to such an extent that it could swamp overall economic output. And like n the case of Greece, the debt of the US economy is owed mostly to foreigners. This is what is the scariest part.

If foreigners choose to withdraw money from the US Treasury, the US economy could collapse, just like Greece has seen it own economy lose the confidence of international investors. The UD economy would just get frittered away if it lost investor confidence and could be brought on its very knees. This would affect all Americans and while the US has never defaulted on its debt, this cannot always be so, unless the debt is brought under control.

]]> http://www.economiccrisisblog.com/economy1/the-us-economy-and-lessons-from-greece/feed 1 Germans Hate Economic Bailout Of Greece http://www.economiccrisisblog.com/global-financial-crisis/germans-hate-economic-bailout-of-greece http://www.economiccrisisblog.com/global-financial-crisis/germans-hate-economic-bailout-of-greece#comments Tue, 16 Feb 2010 02:02:48 +0000 Stephen Cline http://www.economiccrisisblog.com/global-financial-crisis/germans-hate-economic-bailout-of-greece EU finance ministers struggled to voice out measures to bring the Greek economy in track and effect a plan for the economic bailout for the beleaguered Greeks. But Germans were surveyed as being highly skeptical and critical too of this move.  There is a huge perception in Germany that while belt tightening measures had been adopted in Germany, for long the Greeks had been avid spendthrifts. Thus, there is resentment among the Germans about their government having to effect the economic bailout of an irresponsible government and economy too. It is like ‘robbing Paul to pay Peter’.  While a lot of people may speak of European unity and cooperation, it seems that the lines across borders will take a long time to get erased.

But most analysts feel that the larger economies of Germany and France will agree to some economic bailout measures for Greece, because having economic chaos in a country is a very frightening and forbidding prospect indeed. There were  a lot of voices that chided Greece as it had been using American companies and securities firms to hide its debt. While German voters may frown at economic bailout for Greece, it is quite true that Germany will take on the lead role in correcting the mess down there in Greece.

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