Greek Woes Hit European Markets

by Ryan on April 8, 2010

in Uncategorized

Economically, Greece sucks.  Their budget deficit is equivalent to 12.7% of their GDP!  That is massive and scary (by the way, America is around 9-10%!).  Nations, businesses and average investors are beginning to lose faith that Greece will be able to pay back their loans (duh).  So, the FTSE, DAX and CAC all took hits today on these fears, as well as the elusive answer to Greece’s economic crisis, which could ultimately be a German bailout of Greece — a move that could possibly threaten the euro.

I’ve been watching Greece’s economic woes because they are likely to foreshadow our own:  their government has promised too much, they’re running out of taxpayers to tax, the youth feel that they have no future, and their government sees no way out.  It’s like giving the simple answer to a drug addict — don’t do drugs.  Easier said than done, especially (in the case of Western welfare states) when the addiction in question is government spending.  Regardless, there’s only one way out for Greece and like all withdrawals, it’s going to be an ugly and bumpy ride: one we ourselves are likely to take one day.

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