What was the reson For Greece Financial Crisis?

How Will It Affect the world and EU? Will The World Witness Another Economic Melt Down?Does It Prove Euro Is Not Powerful as Dollar?What was the reson For Greece Financial Crisis?In 2001 Greece was desperately trying to convince the EU to let it get in.Helped by Goldman Sachs,Greece hid some of its debt and gave the EU fake statistics.The EU let Greece in and started lending them money,pretending not to know that Greek people could never repay them.In 2004,after the Olympic Games,the greek debt was becoming massive.The president of the EU statistic authority warned the British,French and German that Greece was potentionally giving them wrong statistics,yet those countries' politicians made the authority shut up,because they didn't want to stop that sudden development outburst.They kept lending money to Greece,as well as selling overpriced military goods and supplies.In Greece,politicians were lying to the people and were reassuring them that everything is ok,while they knew that nothing was okay.Greek people kept on voting for them,and,motivated by that economy outbursy,started borrowing money so as to buy goods like cars,homes and stuff.But,the euro is not a currency that supports countries with not so much developed industries and economies.So,while countries like France and Germany were developing,becoming more powerful and rising,southern countries were borrowing money,and were trying to survive only with loans.Gradually,especially Greece created a huge debt which it could not repay,due to the fact that Greece has nothing to support its economy.World stock markets started their attack,banks started asking for their money,corruption became more than apparent and here we are!

This crisis is a sign of things to come.Europe and the US are being overtaken by Asian countries and they can do nothing about it right now,except for trying to cooperate with Japan,another country trying to recover,so as to resist.The Euro should have been more powerful than the dollar,yet it isn't,because Europe followed the wrong policy.Instead of helping southern countries develop first and create a sold economy basis,the EU let everyone in,despit the fact that they weren't ready to work as a Union.So,we now have a Union which works running in two different speeds.On the one hand we have Germany,France and Britain,powrful industrial countries,which always influence world decisions,and on the other hand we have underpowered southern countries like Greece and Portugal,which have no economy basis and only relyon loans from the northern,as well as their potentional development in the future.So while the EU is developing,it inhibits its own process thank to the problems southern countries-and Ireland-have.Totally wrong model! The dollar is powerful due to the fact that all those banks and important stock markets are in the US and they act as a kind of second government,as well as the fact that the US is forever threatening everyone and tries to influence everything using its perfect war machine.How long will this currency last,with a collapsing corrupted bank system and a public debt of 14 trillion?We don't know yet...What was the reson For Greece Financial Crisis?Very good question.



I suspect that the banks who lent money to the Greek government were motivated by greed and did not properly do due dilgence assessments of the risks involved and the debtor's likely ability to pay. I suspect also that the Greek givernment were overconfident about their ability to repay, and that Greek politicians felt unable to handle the unpopularity that would have resulted if they had instituted previously the unpopular minor measures that would have averted the present situation.



It does nothing about proving the euro is not as "powerful" as the dollar. The dollar is, in fact, not particularly powerful.What was the reson For Greece Financial Crisis?Spending more than what they had!!

Euro will ultimately crash and some of these countries will be knocking at others' door with their begging bowl. If Germany or France refused to give aid to other dependants, they will go bankrupt.What was the reson For Greece Financial Crisis?
Mismanagement.