Debate Should Greece leave the EU?

Here we go.
 
ElHorsto said:
No, it is europe who suffers mostly for US' debt now. Greece is just a red herring.
Click to expand...

There are two different financial problems here, that compiled into one recession. One problem is public/government debt, spending excesses of public servants and ill economic polices, plus defaulting on its debt. The tip of this iceberg is Greece, followed by Italy, though Japan and USA are not much behind. Of course there are more indebted countries per capita than Greece but they are able to pay off the debt thanks to good economy.
Second financial problem was caused by housing bubble, and related derivatives - bank products, and not only in USA but also in Europe. It was due to relaxed qualification (for people) to borrow money, here for purpose of buying a house, plus domino effect caused by mortgage defaults causing banks collapse.


Now, it is hard to blame USA for this world crises. Even though they've relaxed housing financials first, they were eagerly followed by many european countries. Also creation of derivatives of mortgages, and related new products, started also in US first and was never regulated (complexity of a system, and lack of will), but again was blindly followed and copied by many Europeans.
I would like to stress that nobody forced anyone country to participate in these excesses.

The strongest example of none-participant is Canada. The biggest and closely connected to US economic partner. We didn't have housing bubble at all, regulation were much stricter, although 80% of us own houses. We didn't need to save our banks. Till today Canada is financially healthy, unemployment at 5%, and not much of recession here.




PS. My province Alberta needs 40,000 temporary workers right now. Government just streamlined acceptance process. Everybody skilled with some english welcome.
 
LeBrok said:
There are two different financial problems here, that compiled into one recession. One problem is public/government debt, spending excesses of public servants and ill economic polices, plus defaulting on its debt. The tip of this iceberg is Greece, followed by Italy, though Japan and USA are not much behind. Of course there are more indebted countries per capita than Greece but they are able to pay off the debt thanks to good economy.
Second financial problem was caused by housing bubble, and related derivatives - bank products, and not only in USA but also in Europe. It was due to relaxed qualification (for people) to borrow money, here for purpose of buying a house, plus domino effect caused by mortgage defaults causing banks collapse.


Now, it is hard to blame USA for this world crises. Even though they've relaxed housing financials first, they were eagerly followed by many european countries. Also creation of derivatives of mortgages, and related new products, started also in US first and was never regulated (complexity of a system, and lack of will), but again was blindly followed and copied by many Europeans.
I would like to stress that nobody forced anyone country to participate in these excesses.

The strongest example of none-participant is Canada. The biggest and closely connected to US economic partner. We didn't have housing bubble at all, regulation were much stricter, although 80% of us own houses. We didn't need to save our banks. Till today Canada is financially healthy, unemployment at 5%, and not much of recession here.




PS. My province Alberta needs 40,000 temporary workers right now. Government just streamlined acceptance process. Everybody skilled with some english welcome.
Click to expand...

I agree with what you say and I did not at all intend to blame USA and whitewash the corrupt EU elites and the badly designed EURO. But I deny that USA are suffering from the EU crisis. To the contrary, I think the US benefits from the EU trouble, because the capital drain from US to EURO zone is being stopped (by downratings for instance) and attention gets distracted from the US debt problems. Not to mention how US house mortgages were packaged and massively sold to european banks few years ago, which now finally have to be paid by EU tax payers. If this was not the cause, it still was a major catalyst and timer of the EURO problems.
 
You must log in or register to reply here.

This thread has been viewed 35473 times.

Back
Top