July 8, 2012
Marcela De Vivo
It has become well-known that Greece is in a state of economic difficulty. In fact, it is estimated that the government debt is at 125% and steadily rising. However, since Greece is thousands of miles away, why should Americans worry about the complications that Greece is facing regarding their budget? There is no simple answer, as there are numerous reasons that should alarm us about the predicament in Greece. Let’s deliberate the top ten reasons why Americans should not disregard that fact that we may be facing a very serious crisis.
Everything tends to revolve around Wall Street. In fact, since many Americans are becoming worried about the Greek crisis, stocks have started to slip. As time goes on and Greece continues to face hardship, the stock market continues to fall at an alarming rate. Simply put, a large majority of investors are worried about the huge debt that Greece has accumulated and are not investing in stocks.
What if this problem spreads to other countries? For example, Spain could be the next likely culprit to be faced with a large budget problem. Americans could be faced with disaster. Europe happens to be one of America’s largest trading partners; therefore, numerous areas of American economics are affected.
One of the biggest uncertainties is what will happen if there is not a clear resolution in Greece. Big investors tend to be comforted by the fact that a solution is at hand or that there is an easy fix. With the Euro Zone lacking a unified political system for the sixteen countries that share common currency, this could become a large and never ending dispute. Read more of this post