has greece resolved its finance problems yet and if so what are the effects on the worlds economics

    0  Views: 476 Answers: 2 Posted: 8 years ago

    2 Answers

    Greece has not solved its financial debt crisis and will not until that debt is forgiven by lending institutions which, for the most part,hail from outside of Greece.

    Naturally, they (lenders) won't stand for this scenario and with the complicity of sovereign governments will force the latter to clean up the mess for them. 

    This leaves only a few possible scenarios:

    1- The Greeks will be forced to climb out of their hole by themselves

    2-The Greek government will choose to default on its foreign debt obligations

    3- Foreign governments will step in to pay Greek debt.

    Any of these options come with huge limitations, risk and consequences.

    Option 1: At best, It will take several generations for Greece to climb out since little wealth-building opportunities are expected to exist for some time to come.

    Option 2: Stiff lenders just one time and you'll never borrow another nickel from them.

    Option 3: Foreign governments (the few relatively healthy ones) have other fires to worry about like Ireland,Portugal and much larger Spain and Italy) not to mention the backlash that this would create domestically

    No they have not resolved anything as of yet however the people in Greece have become really good at blaming all their problems on Germany much like many people in the USA blame Bush for their problems. It is an on going-- going---going thing.


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