Kelly Korntved
1. The Case Study was written in spring of 2011. Research what has happened in Greece since the case study was written. How is Greece doing economically? Did they bounce back after the 2010 bailout?
The global recession and fraudulent steps Greece took to enter the Eurozone took a catastrophic toll upon the country and its economy. In April of 2009, the European Union ordered Greece to reduce their budget deficits, along with France, Spain, and the Irish Republic in hopes to prevent a further trickle effect upon the other countries of the Eurozone (http://www.bbc.co.uk/news/business-13856580). However, Greece was unable to gain control of the piling debt and admittedly announced later that same year in December of 2009 that the country’s debt had accumulated to an astronomical 300 billion Euros but, remained adamant that the country would not default on its debts. Greek banks and government debt began to receive less than favorable ratings and reviews of future prognosis of the country’s ability to recover from ratings agencies. This consequently had effects upon the stock market within the European Union, because when rising bond yields reveal falling prices, investors are quick to pull out their investments before it is suspected to drop even more drastically. This ultimately hurts all participating countries within the Eurozone since they all use the same form of currency and creates an individual and slow moving trickle effect. Furthermore, it is in the best interest of the other stronger and more successful countries within the Eurozone to help the weaker and struggling countries so that the Euro remains intact within all the participating countries of the Eurozone and the stock market does not suffer cataclysmic effects. Subsequently, this is why countries of the Eurozone (mostly Germany and France) reluctantly helped with the International Monetary Fund’s efforts to bail out Greece in a collaborative
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