The largest economies in the world are also among the most indebt countries. The long feared sovereign debt crisis is here and puts pressure on all of us. Some of the most reputable economic analysts suggest that this sovereign debt crisis could be much worse than the 2008 financial crisis so many investors play safe these days. Many economies are still in recession and the global economic situation makes the recovery even more difficult. They all are somehow on hold waiting to see what’s next before making another move. (more…)
Posts Tagged ‘debt’
It passed a year since the first voices of concern were heard. Then there were few people to think that a debt crisis could hit large European economies. The financial crisis from 2008 put the pressure on the banking systems and many countries decided to bail out their financial systems by increasing sovereign debt.
In 2010 the debt crisis hit Greece, a member state of the eurozone. A €110 billion loan from International Monetary Fund (IMF) and EU members was expected to solve the problem in Greece as the country agreed to implement harsh austerity measures. Another two huge loans followed: a €85 billion for Ireland in November 2010, and a €78 billion loan for Portugal in May 2011. (more…)
The common European currency, Euro was considered a huge success before the world economic crisis. In seven years of trading, Euro that started from $1.12, reached over $1.60. The world crisis hit hard the European currency and things are still looking bad. Although the world is recovering after the huge economic crisis, Euro is still in trouble. This time Greece is the one that pulls the Euro down. (more…)