European Sovereign Debt Crisis

Whale

As you know, European Countries and the Eurozone have been facing a Sovereign debt crisis since the collapse of US sub-prime mortgage sector in 2007. The causes of this crisis isn't just the fact that European governments overspent and over-leveraged themselves in the good years. However, this crisis shows no sign of ending soon and may even get worse. Furthermore, a collapse of the Eurozone would have major shocks around the world and would generally be a bad idea.

Also, on this point, a downgrade of France before Germany would upset the balance of power in Europe and may make the crisis terminal. It would have a major affect the 2012 French Presidential election as well.

glennmagusharvey

I think as long as people continue the mindset of "if I invest in something, the primary result I deserve is that I gain more money out of it", then we'll continue to see these issues.

Financial return is definitely a nice thing, but frankly speaking, there are people trying to run countries here, not turn a profit.

Wicked223

I've been trying to find a decent, unbiased summary of the events leading up to the crisis, but I've been coming up short. Anyone have anything like that?

Whale

http://www.bbc.co.uk/news/business-16301630

This is from the BBC and gives some insight to the crisis.

Wicked223

So, essentially, all of the banks in the Eurozone are in debt to each other and this is causing decreased "confidence", and therefore decreased spending?

Whale

Yeah thats a major factor of the Crisis.

edit: http://www.bbc.co.uk/news/business-15748696

Countries also lent to each other as well.

captainbrass

The aspect of this that annoys me most is that "experts" are always turning up on the news and claiming "the markets think this", "the markets think that", "the EU countries need to win the confidence of the markets". The arrogance of it is grating. All that "the markets" are is a bunch of over-paid guys in suits making massive bets with money they borrowed from someone with more of it than sense.

European countries are supposed to be democracies. We don't need the permission of these people to do anything, any more than I need permission to do things from old blokes in raincoats who hang out in betting shops making stupid bets on horses. They're all just gambling addicts; who cares if they go bust?

Malkavian

^Welcome to post-global capitalism.

Whale

http://www.bbc.co.uk/news/business-16505618

 

Eu threatens "action" over Hungary as they have failed to combat the deficit

Whale

Well, it seems that Merkel has offered a solution for this crisis

 

"Political Union for the entire EU!"