Greece and other financially troubled European nations are overwhelmed by their debts. That is why other European nations and the International Monetary Fund may come to their rescue. But to rescue them would require lending them far more money. But if they can't pay their current debts, how will loaning them more money rescue them?
The supposed answer is to have these troubled nations slash their overhead to pay their old and new debts. But if they do, it will collapse their economies. If their economies collapse, where will they get the money to pay any of their debts? The only real answer is for those who loaned them money to forgive much of the current debt. But this would mean the giant banks, hedge funds, mutual funds and insurance companies that loaned that money would have to take massive write offs, write offs most of them can't afford to take.
This means they will appeal to their governments for huge bailouts, bailouts the taxpayers of those countries can't afford. This will impact you as a taxpayer and may impact your savings if some of your money was invested in those troubled nations to get a higher rate of return. Your job may be impacted as well as write offs are taken and European economies shrink. As they shrink so will other economies also shrink. It is a vicious circle that will impact us all and hopefully encourage us to work together to solve the enormity of our problems.
Dick
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