This (http://financialedge.investopedia.com/financial-edge/0510/Greece-The-Worst-Case-Scenario.aspx) went up yesterday afternoon, so I apologize for the late posting.
While there has been a great deal of attention paid over the last few months to the nascent recovery in the United States, the ongoing Greek sovereign debt crisis in Europe is a reminder that there are often long-tail effects to recessions and global economic shake-ups.
How Did This Happen?What has happened is the result of a long series of bad decisions. The establishment of the euro effectively gave Greece access to a huge amount of relatively cheap debt, but Greek officials did not put the proceeds of this debt to good use. Since the euro came into existence, Greece's ratio of debt to GDP has stayed above 100% and the country ran persistent deficits in excess of 10% of GDP. Ultimately, when investors (and, belatedly, the ratings agencies) realized that the emperor had no clothes, rates on Greek debt began to creep up, and matters culminated in the S&P downgrade of Greek debt to "junk" status on April 27 of 2010.
For the rest, please click on through to: http://financialedge.investopedia.com/financial-edge/0510/Greece-The-Worst-Case-Scenario.aspx
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