By FITSNews || The economic collapse of Greece is sending shock waves through the global economy, as a costly European bailout of the troubled nation has done little to soothe investors’ concerns that the crisis will spread to Portugal, Spain and eventually across all of Europe.
The “spillover effect” hit Wall Street on Tuesday, as the Dow Jones shed 2 percent of its total value.
That sell-off continued on Wednesday in early trading as credit ratings agencies said they were considering downgrading Portugal’s debt.
Why does all of this matter?
It’s the beginnings of a global debt crisis, people. In addition to out-of-control government growth in Greece (where the deficit is currently 13.6 percent of GDP), several other “Eurozone” nations are facing similar crises. Take Ireland, where the annual deficit is 14.3 percent of GDP, or Spain (11.2 percent) or Portugal (9.4 percent).
If the economies of all these countries collapse, then it’s only a matter of time before the dominoes fall on this side of the pond – even though many suspect that the United States and Great Britain are conspiring to exacerbate the crisis in an effort to prop up their economies in the short-run.
By Elmo May 5, 2010 at 9:11 pm
The masses are angry they are forced to pay for all the thieving and plundering done by their government.
Don’t say it can’t happen here.
By Rick May 6, 2010 at 7:18 am
All the thieving and plundering? Those were UNION schoolteachers that killed those 3 people yesterday….they killed them to protest a reduction in pay and benefits. Your right in believing that it’s coming here, the problem is the sheep have been shown the wrong enemy…and since the sheep fail to pay attention, they’ll end up hurting more than helping.
By Elmo May 6, 2010 at 11:40 am
The “thieving and plundering” is done by the government by spending(stealing) money they do not have. This type of reckless spending causes popular revolts.
By Alexander Higgins May 6, 2010 at 8:43 pm
I would imagine the protests going on there are mix of both sides, just as there where legitimate protests and fears and astroturfed protests to the health care system in the US.
I tend to lean more toward the idea of the thieving and the plundering being done by the government. After all they have known about this for sometime and being in charge it was their fiscal irresponsibility that lead to the situation they are.
They are not alone, however. Governments around the world have grown in excess with no regard to trying to survive within their means. We face similar situations here in the US with local, state and federal governments trying to spring every last penny from our wallets that they can instead of being fiscally responsible.
For example, NJ has been crying since the election about how it will make up for a 3 billion budget deficit. In the mean time the property taxes are through the roof and the are doing everything from increasing tolls to transit fares to increase revenues.
While debating the last budget they where also talking about the 1.5 billion in road projects for the NJ turnpike and the building of a new tunnel connecting NJ and NY. Like, HELLO!! Right there is your budget deficit.
But no, the government would rather continue down its path of reckless spending and will break the taxpayers back to pay the bills. A similar battle is going on between our governor and the local unions and school teachers in NJ.
Now, I know that the NJEA is running a cartel but the is leaching off the tax payer but its lower level of the hierarchy that’s getting pinched while the upper levels double and triple dip in state pension funds and submit fake PHDs to obtain outrageous raises and benefits.
Something has to give on both sides, but is the corrupt and irresponsible powers that are in charge who have created the mess in Greek, Europe and right here in the United States.
Why should a taxpayer of any of these nations bear the burden of perpetuating governments that fail them time and time again and have display the utmost incompetence in the most trivial of their duties?
By CIM Courses July 25, 2011 at 5:02 am
That post was better than a new episode of Falling Skies.