Underreported: Greece's Debt Crisis

Thursday, December 17, 2009

Is Greece the new Dubai? On this week’s first Underreported, Stacy-Marie Ishmael of The Financial Times, explains what’s behind Greece’s ballooning debt and how the government is trying to address the budget crisis. Plus, we’ll find out how the European Central Bank is reacting to Greece’s troubles and whether the euro will be affected.


Stacy-Marie Ishmael

Comments [5]

Jgarbuz from Queens, NY

DEFICITS cannot exceed 3% of total GDP according to EU rules, not total debt. Please let us not forget to differentiate between annual deficits and total debt. thank you.

Dec. 17 2009 01:36 PM
Harry Kolos from NY

What about the assertion that I hear from many of my family and friends that a big part of the Greek economy's problem is that the Drahma was traded in too low against the Euro.

Thus, overnight salaries remained the same yet the cost of living tripled. Including no cost of living adjustments for pensions for retired Greeks.

Dec. 17 2009 01:34 PM
Jgarbuz from Queens, NY

Well US total debt of over $11 Trillion dollars is roughly 60% of annual GDP. But economist rule of thumb is that when debt reaches 100% GNP or greater, that country is considered technically bankrupt. That makes it very hard for it to gain loans and recover. It's like a business that is too far gone into debt and bankruptcy is the only viable option. But countries are a bit different.You can't simply come in and remove the assets of the country. It just becomes a failed state unless some angel, say the US, EU or IMF comes to its rescue.

Dec. 17 2009 01:28 PM
Richard Johnston from Upper west side

The EU jiggered the books to let Greece into the Euro in the first place. Does that mistake have any effect on the present problem?

Dec. 17 2009 01:27 PM
George from Bay Ridge

What is the risk that the country could default?

Why is Greece in such a mess?

Dec. 17 2009 03:46 AM

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