Market Meltdown, Dow crashing!

[yanamaster]

Ail said:

yanamaster said:

Spagoodle said:
The Greeks are in a lot of trouble. This bail out gives them some time, like a couple years, but in the end they are going to have to default or restructure some of this debt. The reason they got the bail out is due to chain reaction it would cause if Greece was forced to default. Country's like Spain, who are also are running big deficit compared to their GDP would then see a run on their banks. Pretty much if Greece fails people will start to lose confidence in the Euro and everyone will take their money out the bank system in these country's and stick it in German bonds. At this point Germany is really holding the EU together, at least economically. If the Germans pull out of the Eu its going to be a disaster for for the rest of the country's in the EU.

Well all you wrote is true but here is the good part:

Greece was promised this 110b euro bailout if they pass a restructure package that would guarantee economic stability for the next years. Obviously since they received the money that means that package was passed in the parliament.

 

Personally i think that sooner or later the Eu will have to become more like the united states to make sure that a similar crisis doesn't happen again.

And how exactly is the united states safe from such a crisis ?

Did you follow the issues California has had with its deficit these last 2 years?

I didn't say like the Us but more like the US. Basically i want the eurozone to become one solid economical being but without individual state economical independance. Doing so will enable easier correction methods in economical anomalies like this. Besides, americas problem with California is a whole nother bucket of mud altogether. And you have the deregulation of your energy market in that state to thank for. How much did California lose before the gov finally set a cap on energy prices? 30 billion dollars? The current deficit problems of California today are the offspring of what happened 8-10 years ago.