IMMP pls help need to understand the link...Euro crisis pls pls..have to write a report?
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i have read about both of them separately and i understand them but in some of the articles..i felt that there is some link.. is there any link between the Us sub prime lending crisis of 2007-08 and Euro debt crisis of 2011?I mean any link? Pls any kind of help will be extremely appreciated..it s very very important help :)
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Answer:
Strictly speaking there is no strong link. The US subprime crisis triggered a worldwide financial crisis during 2007-9, but Greece's chronically excessive budget deficit was more than 13% of GDP in 2009. The exact amounts of the deficits seem to have been hidden from the public Since the EU is forbidden to bail out member governments (like US does for its member states), the government of Greece has had to make loans from commercial banks, and is required to keep up with the interest payments. That is causing the crisis. Not only is her situation a drag on recovery for Europe, if things aren't resolved with Greece, she may have to drop out of the euro, which might derail the European recovery.
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