Debt Contagion and the Global Economic Collapse

See video
James Corbett
Nigel Farange
June 27, 2011


Debt Contagion and the Global Economic Collapse
by grtv

World markets experienced dramatic losses and rebounds last week as investors watched economic developments in Greece with growing anxiety. The jitters come after weeks of gathering turmoil in the Eurozone, starting earlier this month when credit rating agency Moody’s Investors Service downgraded Greek debt to CAA1 and indicated a 50% chance that the country would default on its bonds. Just two weeks ago, Standard and Poor responded by downgrading Greek debt to CCC, giving it the lowest credit rating for any country in the world.

One fear is that the contagion of a Greek default would spread throughout the Eurozone, causing borrowing rates for other fragile European economies in Ireland and Portugal to skyrocket. A Portugal default would be a massive hit to the Spanish banking system, which has the largest exposure to Portuguese debt in the Eurozone. Now Moody’s has threatened to downgrade the credit worthiness of some of the largest Italian banks, and has put the Italian public debt on review for downgrade.

The EU and the IMF have scrambled to throw together a second massive bailout for the tiny Greek nation, this one expected to be worth 120 billion Euros, with 12 billion Euros of those funds to be disbursed early next month. The Greek parliament will have to vote this week on whether or not to accept the package, which contains another round of punishing austerity measures as conditions for the funds.

As European leaders scramble to further ensnare Greece in a web of bailouts, the Greek people have once again taken to the streets en masse to protest the austerity cuts that are the condition for the so-called rescue. Mass riots have turned the streets of Athens into battlezones between protesters and police, with demonstrators throwing stones and petrol bombs, and police returning fire with tear gas and stun grenades.

These protests are reflected in similar large scale marches in Spain, where demonstrators from Barcelona, Valenca, Cadiz, and other areas of the country plan to converge for a mass demonstration in Madrid next month, where activists have been occupying the central square for several weeks. Now the Germans are beginning to show their frustration at shouldering the brunt of the burden for the Eurozone bailouts, with German Chancellor Angela Merkel under attack by members of her own party for her handling of the crisis.

Puzzlingly, the fact that so many European nations are on the verge of economic collapse and the future of the Euro itself has now come in to question has not only failed to give proponents of European integration pause for thought, it has emboldened them to use the crisis to argue for further centralization of power in the European Union.



2015 / 06 / 23 says:

Much obliged for posting this.Certainly an awesome bit of work Thanks for your

2015 / 07 / 24
celen says:

I want to surf and my starting hotspot for data is the web journals which have constantly helped me in my instruction. clash of clan forum

2015 / 07 / 25
celen says:

I discover the subjects you cover to be fairly fascinating. I truly like and welcome your web journal article. followers instagram likes free

2015 / 07 / 28
celen says:

I am trusting the same best work from you later on too. I truly value the sort of points you post here. tango buenos aires

2015 / 08 / 06
celen says:

Really the blogging is spreading its wings quickly. Extraordinary post and i like this online journal. magaluf bar crawl

2015 / 08 / 15
celen says:

It has the so invigorating, in this manner stacked with modifications we essentially didn't realize Always so intriguing to visit your site. dedicated server

2015 / 08 / 24
project says:

I was precisely hunting down. A debt of gratitude is in order for such post and please keep it up. free tv

2015 / 08 / 27
webdesign says:

Much obliged for offering your thought to us Wonderful information and straight to the point.webdesign antwerpen

2015 / 09 / 05
tolla says:

This site is phenomenal. I generally discover extraordinary information from it. canon eos rebel t5 camera review

2015 / 09 / 13
sky says:

An obligation of appreciation is all together to share. Amazing locales !Pretty extraordinary customer services

2015 / 09 / 19
Andy says:

Hey – extraordinary web journal, simply checking out a few online journals, appears a truly decent stage you are utilizing. Andy

2015 / 09 / 19
Andy says:

Hey – extraordinary web journal, simply checking out a few online journals, appears a truly decent stage you are utilizing. Andy

2015 / 09 / 20
celen says:

Your article shows lets me know you must have a great deal of foundation in this point. prowrestling

2015 / 09 / 23
celen says:

I would other than so you can endure to the solid tinges franc for taking a gander at this dissipate.

2015 / 09 / 24
celen says:

Everything is exceptionally open with a truly clear elucidation of the difficulties. It was genuinely enlightening. Popcorn Time

2015 / 09 / 30
celen says:

I checked out the net for additional data and actualities with respect to the worry and found numerous individuals will go and additionally your perspectives on this site.

2015 / 10 / 03
epoxy garage flooring nh says:

the web will be a ton more profitable than whatever other time in late memory before I am having a mind boggling time today ! epoxy garage flooring nh

2015 / 10 / 03
instagram says:

I am sure they will be benefit by this site.I was incredibly fulfilled to find this site. gain instagram followers | likesasap

2015 / 10 / 17
free streaming sites says:

Your new significant key focuses infers much a man like me and amazingly more to my office laborers. With thanks ; from everybody of streaming sites

2015 / 10 / 18
celen says:

I might want to thank you for the endeavors you have made in composing this article. bikini luxe

2016 / 01 / 27
celen says:

Eurozone bailouts, with German Chancellor Angela Merkel under attack by members of her own party for her handling of the movies online

2016 / 01 / 28
celen says:

It truly displays to me where to intensify my online journal.Good post with pleasing tips and thoughts. ​watch movies online

This question is for testing whether you are a human visitor and to prevent automated spam submissions.
By submitting this form, you accept the Mollom privacy policy.

Related videos

Our newsletter