Greece

How to make your first Trillion!

The Eurozone recently unveiled a plan to help the debt crisis in Greece. The plan will make banks lose fifty percent in Greece’s current debt, allow the current bailout fund to increase to $1.4 trillion, and mandate that banks raise more capital to prevent future crisis. The main objective was to relieve Greece while preventing further economic downfall to hit Spain and Italy. The solution will be finalized sometime in November but for now the Eurozone has bought some time to prevent further economic decline.

The idea that a whole continent came together to help the crisis of one country is going to affect policy down the road. Action had to be taken but now that a deal of this magnitude and cost was hammered out the Eurozone will take new shape making the smaller economies even more dependent on the larger ones. The main problem now is to find other international economies that are willing to invest large amounts of money back into Europe. Cooperation is this aspect is a great tool that was used to generate large sum of euros to bail out Greece, but they must be extra cautious in the future to make sure Spain and Italy don’t follow down the same road.

Liberal

http://www.bbc.co.uk/news/world-europe-15478358

http://www.chinapost.com.tw/business/europe/2011/10/28/321210/p2/Markets-rally.htm

October 27, 2011 at 13:57 pm