This is a crisis unfolding in front of our eyes, and it arguably is the most important financial crisis of the last decade. Back in late 2009, many investors started to worry about whether Greece could afford to pay its debt (government debt levels were increasing rapidly due to high spending). Confidence over lending money to Greece plummeted, which lead to higher interest rates for the country. It even caused the government debt to be regarded as junk bond status – aka invest-only-if-you-can-afford-to-lose-it status.
In May 2010 the Eurozone and the IMF agreed to lend the Greek Government €110 billion provided they implanted significant austerity measures. In October 2011 Eurozone leaders agreed to write off 50% of the Greek debt.
The effect of this has been terrible; the average pre-crisis interest rate was 3.85%. In July 2010 it rose to 9.73%. In January 2011 it was 12.27%. In July 2011 it was 26.65%. After the debt write off, the interest rate exploded. In January 2012 it was 129.97%. In February 2012 it was 177.37%, 46 times more than in January 2010. Now with Greece owing 143% of its GDP, it means the country will almost certainly default on its debt, leading to even higher interest rates – a vicious cycle.
And looking beyond the interest rates, the Greek people have protested; the savage austerity measures will result in huge unemployment and public services will be reined in. The EURO could be ruined, and this in turn could destroy the European Union, a vital part of European trading. This could plunge Europe (and perhaps America due to American banks’ lending significant money to European countries, so ergo, European countries plunge into recession could easily cause another American recession) into another recession. This is a country in turmoil and we can certainly expect Greece will stay in the news for a long time to come.EURO, European Union, GDP, Greek debt, IMF, the Eurozone. Considering this period heavy market volatility, experts advise using new forex strategy tester.
What Is Meant By Penny Stocks?
A lot of people are under the impression that penny stocks will only cost you one penny per share, but this is not the case.
The reason penny stocks have How to Use Stock Market Trends: If you have decided that you would like to make some extra money because of how bad the interest rates are at the moment, then you may be thinking about Investing Pointers for Beginners: When someone has developed an interest in making their money work for them, they often turn to stocks as a great way to invest their savings. Of course, it does Golden Rules of Stock Market Investing as per Walter Schloss: Walter Schloss has revealed a number of tips for investing in the stock market, and coming from a man many regard as one of the successful people to have ever Tips for New Day Traders: It used to be that day trading was the domain of investment bankers and other financial professionals.