European debt crisis gets worse as Spain is downgraded

Discussion in 'General Global Topics' started by Avatar4321, Apr 28, 2010.

  1. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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  2. Devin
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    Devin Feel the breeze

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    Yep. It's not only Spain. Look what's happening in Greece right now. The EU is trying to bail them out. And last year Iceland B.V. (before volcano) went bankrupt and its top leaders all resigned. They had invested most of their cash into American investments (derivitives) then lost their shorts. Because the world economy is truly a WORLD economy, whatever happens to the big countries will eventually affect the smaller ones without much capitalization. Same as what happened to the banks in the US; big ones failed first, smaller ones followed in droves.
     
  3. RetiredGySgt
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    RetiredGySgt Platinum Member

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    Europe is a liberal paradise, they are all in trouble. Even most of their supposed conservative parties are left of Center over here.
     
  4. editec
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    editec Mr. Forgot-it-All

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    Gee Spain is in debt.

    To whom?

    Where'd they get all that money?

    Just keep thinking about that question until you understand why I asked it.

    Here's a clue though...

    Everything that was still is. We still have the same productive capacity we had.

    Yet suddenly whole nations filled with productive people are broke.

    How does that happen?
     
  5. peter
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    peter Member

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    I can't imagine what would happen if Spain needs bailout too :( ...
     
  6. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Europe and the U.S. are on the brink of extreme sovereign debt crises. We can't borrow our way out of this. The only answer is to seriously reduce government spending.
     
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  7. peter
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    peter Member

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    I agree. So where will we start? Hmmm ... Social security and Medicare?
     
  8. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    As good a place to start as any - in addition to a freeze on spending and hiring while programs can be reviewed and slashed.
     

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