Greek Default Believed to be Just a Matter of Time

As stated in several news articles, Greece has been facing a financial crisis that has really hit home. Late last week Greece announced that they would not be able to meet the 7.6 deficit target. According to the article, the prime minister has talked with the European Commission, the International Monetary Fund as well as the European Central Bank to see if Greece is eligible for a bailout. “The debt level in Greece is not sustainable,” said Farid Abolfathi, the senior director of the Risk Center of IHS Global. The only reason Greece has stayed afloat this long is with the help of the International Monetary Fund and its partners. At this point Greece cannot repay all of their creditors what they are owed and there is no possible way for this to happen by any means being that Greece has been in a recession for a while now. With this being said Greece will have to default. Even after a default Greece will be dependent on other nations for many years to come. Greece will be the first European nation to default if they agree to do so but this will mean major changes in the economic economies all around the world.

With the world being so connected, countries that are thousands of miles away will be affected by Greece’s default. Greece’s economy like the U.S.’s has been in a recession and cannot repay its creditors. Having to get financial help from other nations will only mean that less money will used in other economies that could be spending that money on paying for their own debts. The default in Greece will cause jobs to be lost as well as cause many people to go into early retirement. Businesses around the world will see the financial decrease that the default in Greece has caused. Less revenue for the company means fewer opportunities for citizens to improve standards of living as well as being able to do what they please in their spare time. European countries that will be helping Greece financially will cause its citizens to possible pay more taxes or cause some of their citizens to lose jobs or even go into early retirement just as Greek citizens will be forced to do. Greece’s Default will mean major financial setbacks in the long run and cause financial burden on other nations all around the world. The default will be straining money out of other economies in an effort to bring Greece’s economy out of the dirt, while trying to sustain individual economies that are financially unstable as of now, causing social contraints on how people interact and how they live their lives.

Link to Article: http://www.chicagotribune.com/business/breaking/chi-greek-default-believed-to-be-just-a-matter-of-time-20111005,0,1827243.story