Greece, one of the oldest countries on the planet, suffers from one of the oldest problems on the planet: debt. The Greek debt debacle is playing significant havoc on the world’s financial markets. As Carmen M. Reinhart, author of a book on 800 years of world debt crises said on The New York Times Economix blog recently, “Greece casts a long shadow on the European continent because 15 other countries share a common currency with it, the euro.”

What does the euro and Greece’s debt problems have to with the American economy? Far more than we would like, as was indicated by the meltdown in the world financial markets in the first week of May. The “Crash of 2:45” is what the May 6 market plummet is being called and it was a vivid reminder that the finances of the world are intricately connected.

The week following the market meltdowns, the European Union and the International Monetary Fund are bailing out Greece to the tune of $1 trillion. According to the Associated Press, the huge rescue package was more generous than expected and spurred a rebound in the financial markets. But like America’s bank bailout two years, it has been met with as much skepticism as praise.

Simon Johnson, former chief economist at the International Monetary Fund, believes Greece is headed for a deep recession. He believes that the European Union is basing the bailout on numbers that are more rosy than realistic. Not to mention, Greece is hardly the only European country in debt. According to Johnson, Greece owes Germany and France, but Portugal owes Spain. Spain owes Germany and France, and apparently no one wants to think about who or how much Italy owes. This explains why the word “contagion” was so ubiquitous in recent discussions on the European economy.

Whether the E.U. Silagra package will contain the debt crisis from spreading across Europe is something that only time can prove. It does, however, indicate Europe’s commitment to back the euro and stabilize the original propecia markets. Just the announcement of the rescue package caused the Dow Jones industrial to make its biggest comeback in a year.

The world certainly felt the repercussions of U.S. recession, so it’s no surprise that Americans should suffer some from Europe’s financial crisis. Perhaps this recent market scare was a healthy reminder to Americans that the economy is still fragile. For those with investments, Mint.com believes this is a good time to review those investments with Europe’s likely long-term troubles in mind. If recent improvement in the economy was bringing back some bad personal spending habits, then Greece’s debt problems Cialis Jelly are a good reminder to stay out of debt.

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Category: Politics/World Affairs
Keywords: Greece, debt crisis, Euro, European Union, austin real estate, International Monetary Fund, austin mls, world financial markets