ECON 160B - Pinder 1 Darren Pinder ECN 160B H.W. #5 June 8,...

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Darren Pinder ECN 160B H.W. #5 June 8, 2011 For the last several years Greece has been in an economic crisis. The current national debt, placed at €300 billion, is larger than the country's economy, with some estimates predicting it will reach an extra 140 billion by 2012. The country's deficit, or the difference between current government spending and total revenue from all types of taxes, is 12.7%. This outcome has been due to years of unrestrained spending, cheap lending and failure to implement financial reforms, thereby leaving Greece badly exposed during the current global economic downturn. The global recession has brought to light statistics that reveal debt levels and deficits exceeding limits set by the European Union (EU). Greece's credit rating; the assessment of its ability to repay its debts, has been downgraded to the lowest in the EU, meaning it will likely be viewed as a financial “black hole” by foreign investors. This leaves the country struggling to pay its bills as interest rates on existing debts rise. I believe that in order for Greece to alleviate these problems they
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ECON 160B - Pinder 1 Darren Pinder ECN 160B H.W. #5 June 8,...

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